Regulated utility

Consider a typical rate-making proceeding for a regulated utility. Electric utilities can recover all prudently incurred operating and maintenance costs plus an opportunity to earn a fair return on their investment. This process involves three steps (1) deter-... 

While starch is the major structural polysaccharide, plant energy storage and regulation utilize a combination of similar polysaccharides that are referred to as starch. Starch can be divided into two general structures, largely linear amylose (structure 9.17) and largely branched amylopectin (structure 9.18). 

FERC believes that 137 utilities will be required to open up their transmission networks. As of mid-1996, the NOPR is still being debated. However, several states have adopted preliminary plans to open up the transmission networks of their regulated utilities by the year 2000 or shordy thereafter. 

The larger question of what happens beyond the first few plants cannot be answered with any more certainty. Even the basic question of plant ownership offers a dilemma. Regulated utility financing would bring lower fuel costs to that utility. However, it means attempting to operate a complex facility without suitable corporate experience in refining and marketing. 

Different investment criteria for energy users versus regulated utilities. 

The matter of different investment criteria for energy users versus regulated utilities is exemplified by comparison of the feedwater heater project (41) to the cement kiln heat recovery project referred to above. The utility chose to replace the de-... 

The support for clinical superiority could be based on evidence of greater effectiveness and increased safety or represent a major contribution to patient care. In short, orphan drug regulations utilize clinical data to demonstrate product differences. Examples include [23] ... 

The possibility that insulin regulates utilization of D-glucose for the synthesis of mucopolysaccharides in the ground substance of connective tissues was explored by Schiller and Dorfman (S3). Incorporation of sodium acetate-C into hyaluronic acid and dermatan sulfate in the skins of alloxan-diabetic rats was found to be approximately one third of that in the skins of either normal or partially fasted animals. These data suggest that synthesis of connective tissue mucopolysaccharides is inhibited in insulin-deficient animals. 

Adapted from Kohan and Wilhelm (1980). Nonregulated industrial financing is 100% equity and 15% DCF-ROR regulated utility financing is 65/35 debt/equity ratio. 

Table II shows the estimated revenue requirements. Electricity and cogenerated products costs are based on regulated utility financing, while steam costs are based on non-regulated industrial financing. The cogeneration case costs are shown on a total product basis, since two products are involved. Figure 1 shows the selling price of electricity as a function of the selling price of steam for the cogeneration case.

Year Average Values Regulated Utility Financing... 

Plant Financing Regulated Utility Regulated Utility... 

Figure 2. Production of electricity by wood combustion—effect of plant size on revenue required from the sale of electricity by a regulated utility...

Table VI shows the estimated revenue requirements using regulated utility financing. Costs for the pyrolysis case are shown on a total product basis, since two products are involved.

Figure 3. Production of oil and char by pyrolysis of wood—selling price of pyrolytic oil as a function of selling price of char (regulated utility financing)...

Table VIII presents the estimated revenue requirements. The methanol case uses regulated utility financing, and the ammonia case, non-regulated industrial financing, based on considerations of the likely markets to be served by these products. The estimated costs of producing methanol or ammonia from wood are higher than the costs of producing methanol or ammonia from coal. This is ejqplained in part by production rates (the rates from wood-derived methanol plants are about one-tenth of those from "typical" coal-derived methanol plants ammonia production rates are similar from the two resources since the ammonia market is typically demand-constrained) and partially by feedstock differences (e.g., green wood is half moisture).

This is one reason why a number of written-ofif nuclear plants in the US markets have been sold by regulated utilities to some merchant companies specialized in nuclear plant operation. These latter companies can indeed extract greater benefit from the large margins of these plants than regulated companies with cost-of-service tarilfs (Lacy, 2006). 

As a merchant we have to be careful, but also as a merchant the reward is at a much higher level of return compared with regulated utilities (M. Shattuck, Constellation chairman at the Merril Lynch Power and Gas Leaders Conference in New York, September 2007). 

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