Electric utilities in the 1970's: financial practices and performance. Analysis report

Characteristics of financial factors that are controlled by regulatory bodies and which have a significant impact upon the financial condition of investor-owned electric utilities are explained. Specifically, the report emphasizes matters affecting a utility's cost of service such as: the composition of operating costs; normalization versus flow-through accounting (particularly where depreciation and the investment tax credit are concerned); the rate base; and construction work in progress and the related allowance for funds used during construction. Also reviewed is aggregate investor-owned utility financial data for the 1970 to 1977 period. A selected bibliography of 22 items is appended. 3 tables.