Public Utility Commissioner Selection and Electric Utilities' Cost of Capital, Part 1: The Overall Cost of Capital. Final Report for 1986/87 SOMED Project

摘要

The objective of the project is to determine if the direct election of Public Utility Commissions (PUC's) has any effect on electric utilities cost of capital. The first part of the project is an analysis of the overall cost of capital of electric utilities. The authors use book-value-weighted average of the costs of short and long term debt and common and preferred equity for 1982. A random coefficient regression model is used to analyze the effects of political and financial variables on the overall cost of capital. Direct election of the PUC has no effect on this measure of the overall cost of capital.