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The Impact of Nuclear Power Plant Construction Activity on the Electric Utility Industry's Cost of Capital

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  • Keith Berry
  • Samuel Loudenslager

Abstract

All across the United States, electric utilities are now faced with the prospect of prematurely abandoning partially completed nuclear units. While there are many reasons for this dilemma,[ the ratemaking implications are profound. They force regulators to make the unsavory decision as to the appropriate allocation of the fixed costs sunk in the abandoned projects between ratepayers and stockholders.' If a significant number of these plants are abandoned, the dollars at stake (estimated to be as large as $66 billion') in any ratemaking division of accountability are staggering.

Suggested Citation

  • Keith Berry & Samuel Loudenslager, 1987. "The Impact of Nuclear Power Plant Construction Activity on the Electric Utility Industry's Cost of Capital," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 63-75.
    • Handle: RePEc:aen:journl:1987v08-02-a05
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    JEL classification:

    • F0 - International Economics - - General

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