Financing the electric utility industry

Book · Wed Jan 01 04:00:00 EST 1975

OSTI ID:7359371

Weidenbaum, M L

The question of financing investor-owned electric utilities through the rest of this decade is examined in this study, which is described as ''impartial and comprehensive.'' The serious financial condition of electric utilities necessitates that changes be made in government and private policies. In considering regulations it is concluded that: 1) rates must be increased; 2) decision-making processes of state regulatory commissions should be brought up to date; 3) each utility should be permitted to use automatic fuel pass-through clauses, future test years, normalization of tax incentives, charges for late payments, and interim increases; 4) regulatory lag needs to be reduced; and 5) peak-load pricing is encouraged. Utility managements are urged to make the following changes: 1) shift priorities from emphasizing market expansion to focusing on economic and efficient use of electric power; and 2) shift advertising away from peak-demand use and educate consumers to use electricity efficiently. Congress is asked to raise the 4% investment credit for utilities to the 7% applicable to all other industries. Special taxes on electric utilities are discouraged. Changes in general economic policy should be made to foster an economic environment conducive to private saving and investment. Consumers also need to understand that current public policy, which is often a holdover from depression years, has to be altered to meet today's inflationary situation. (BYB)

• Research Organization: Washington University, Center for the Study of American Business, St. Louis, MO 63130
• OSTI ID: 7359371
• Country of Publication: United States
• Language: English

Related Subjects

200300 -- Electric Power Engineering-- Power Transmission & Distribution-- (-1989)
24 POWER TRANSMISSION AND DISTRIBUTION
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
CAPITAL
CHARGES
ECONOMIC POLICY
ELECTRIC POWER
FINANCING
GOVERNMENT POLICIES
INVESTMENT
PEAK-LOAD PRICING
POWER
PUBLIC RELATIONS
PUBLIC UTILITIES
REGULATIONS
TAXES