Electric utilities increase capital market share as cost rise continues

Regulators who perceive a conflict which doesn't exist between utility consumers and investors can jeopardize the financial integrity of a utility to the extent that it loses its ability to sell securities. Rising utility construction budgets during the 1970s were the result of inflation, a lack of experience with nuclear plant construction, pollution-control requirements, and errors in the five-year forecasting pattern. Tabulations of utility construction and financing from 1969 to 1983 suggest that future financing requirements could be easier than those of the past except that earning quality and dividend protection have changed and institutions are less interested in common equity stock. Although strong A-rated utilities always have access to capital markets, the recent downgrading of quality ratings will make financing difficult for many. 8 tables. (DCK)