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Article Title

Inflation and Regulation

Document Type

Research

Keywords

Public Utilities, Inflation, Regulation

Abstract

Traditional public utilities are regulated by one or more regulatory bodies. Rate increase requests must be submitted to and approved by the appropriate regulatory body. Such approval may take from 6 months to several years. During this period of time, inflation may increase the cost of doing business without necessarily increasing revenues by corresponding amounts, and thus further decrease earnings and/or rate of return on common stock. Ultimately, any decrease in earnings or rate of return on common stock is born by the stockholders and may affect the ability of the company to attract new outside capital for construct ion purposes. The end result may be a financial bind - where and how to get money to construct facilities to meet future demand. A number of procedures are being used to moderate the harmful effects of inflation.

Publication Date

September 1977

Journal Title

Proceedings of the Iowa Academy of Science

Volume

84

Issue

3

First Page

126

Last Page

128

Copyright

© Copyright 1977 by the Iowa Academy of Science, Inc.

Language

EN

File Format

application/pdf

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