Electric Utilities at the crossroads. Part II

This article, the second of a two-part series, reports signs that electric utilities will be allowed higher rates of return and that regulators are showing concern for the financial needs of utilities as well as consumers construction delays and cancellations in recent years reflect financial problems as well as a decline in the rate of power-demand growth. A reduction in regulatory lag time would help utilities more than any other reform. Diversification is viewed as a fad, although some value is seen in vertical integration. The report covers capacity and rate-planning procedures to meet new demand and some of the new technologies in coal cleaning, nuclear development, fuel cells, cogeneration, and alternative energy sources. (DCK)