How to survive in the money and capital markets. [Public utilities]

A basic problem among publicly-owned electric utilities is how to survive in the money and capital markets. The current bond market and interest rates are examined. After reviewing the present trend in the corporate and municipal bond markets, the concern over rising interest rates at market levels of both is summarized. The significant reason that publicly-owned electric utilities have been able to offset rising costs is because of the availability of tax-exempt financing. Unfortunately, many well-meaning persons are quick to suggest to these systems that the solution to future financing rests with taxable municipal bonds. The truth of the matter is that the future of survival of the publicly-owned electric systems in this nation rests with preserving the tax-exempt status as well as encouraging and developing joint electric power projects. The outcome of the nuclear power issue is directly related to the publicly-owned electric utilities because a number of the joint power projects currently being considered involve groups of public systems preparing to purchase part of existing or planned nuclear power plants. Although the problems of financing joint power projects are becoming more complex, such sources of energy are now available to many publicly-owned electric utilities. (MCW)