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A financial model for publicly-owned electric utilities

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  • Hall, Darwin C.
  • Thomas, Brian G.

Abstract

Supply planning by electric utilities is fraught with uncertainty. An essential tool for the evaluation of the riskiness of alternative supply plans is a financial simulation model. Sophisticated models of investor-owned utilities have been employed by both regulatory bodies and utilities. However, such models have not been developed for publicly-owned utilities. This paper details the reasons why models of investor-owned utilities are inappropriate for use by publicly-owned utilities. A financial model of a publicly-owned electric utility is presented and applied. Finally, uses and abuses of financial models are discussed.

Suggested Citation

  • Hall, Darwin C. & Thomas, Brian G., 1984. "A financial model for publicly-owned electric utilities," Energy, Elsevier, vol. 9(4), pages 333-340.
    • Handle: RePEc:eee:energy:v:9:y:1984:i:4:p:333-340
    DOI: 10.1016/0360-5442(84)90104-X
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    Cited by:

    1. Darwin C. Hall, 2009. "Prescriptive Public Choice: Application To Residential Water Rate Reform," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 555-565, October.
    2. Hall, Darwin C., 1998. "Albedo and vegetation demand-side management options for warm climates," Ecological Economics, Elsevier, vol. 24(1), pages 31-45, January.

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