IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/16995_9.html
   My bibliography  Save this book chapter

Public utility finance

In: Public Utilities, Second Edition

Author

Listed:
  • .

Abstract

The public utilities finance function requires decision-making in at least four principal areas: (1) capital structure, which refers to the ratio of debt to equity in the financing of the organization; (2) the operating expense and investment structure, which are influenced by the regulatory environment; together, these heavily influence the utility’s allowed return on investment; (3) the acquisition and cost of capital, which are shaped by the financial strength of the utility; and (4) working capital requirements. Traditionally, service revenues were sufficient to cover operating costs on a pay-as-you-go basis, while capital improvements were financed through borrowing or grants. For publicly owned utilities, the traditional structure is changing, however. Fewer federal or state grants are available and loans are very hard to come by. This chapter discusses the need for rate increases to fund operations and capital improvements.

Suggested Citation

  • ., 2016. "Public utility finance," Chapters, in: Public Utilities, Second Edition, chapter 9, pages 175-197, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:16995_9
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781785365522.00017.xml
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniela PIRVU & Carmen Mihaela MOGOIU & Claudia STANCIU-TOLEA, 2017. "Taxation Of Personal Incomes In Romania: Present And Perspectives," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 16(1), pages 45-52.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:16995_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.