Industry report: Utilities continue conservative capital spending trend

Now more than at any other time in the history of the electric utility industry, the drive to maintain and, if possible, increase cash flow is of prime importance. Most utilities are well aware that in order to remain profitable in the coming competitive energy marketplace, they must prudently limit their capital expenditures. Regardless of when deregulation takes place in the industry, most utilities are already preparing for the changes. Utilities are learning by doing. Through cutting capital expenditures, they are being spared the cost increases that go along with capital investments. Trhough heading off cost increases, utilities are afforded the opportunity to increase their pricing flexibility and impact their cash flow in a like manner.