The “Perfect Storm” or the “New Normal”? Meeting the Challenges of Maintaining Financial Viability

摘要

In light of current economic hardships, utility managers in California as well as the rest of therncountry must be proactive in understanding and addressing the financial difficulties that theirrnutility, their customers, and other governmental agencies are facing. Adapting to these newrneconomic forces includes developing and implementing appropriate rate structures, preparingrninsightful financial plans, and planning for future capital needs, especially asset replacementrncosts. This paper outlines current financial and economic conditions and projections that utilityrnmanagers are now facing and recommendations for meeting those challenges.