Scale effects in the Southern Electric Utility industry and the performance of Houston Lighting and Power relative to other southern utilities

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dc.contributor.advisorYoung, Richard D.
dc.contributor.committeeMemberHuddle, Donald L.
dc.contributor.committeeMemberBlanco, Herminio A.
dc.creatorKrasner, Thomas P.
dc.date.accessioned2018-12-18T21:22:02Z
dc.date.available2018-12-18T21:22:02Z
dc.date.issued1984
dc.description.abstractUsing an econometric, cost function analysis, the author found large economies of scale, and in some cases, large diseconomies of scale associated with firm size. The regressions supported the findings of previous authors, which suggest the existence of constant returns to scale for fimrs above 4 MW. The effect of capacity factor proved to be minor. Input prices as well as regional and technological distinctions explained significant cost variation. Cost differences between Houston Lighting and Power and the other companies in the sample, whether positive or negative, seemed due to economies of scale and HL&P's wage structure. In most cases these cost differences were minor. HL&P’s recent nuclear and coal construction programs were also considered. HL&P initiated its nuclear construction program in national and regional environments which favored nuclear power. According to cost estimates in the 197s, nuclear generating costs would undercut those of coal or lignite. Like other utilities, HL&P seemed to not anticipate future nuclear cost escalation. Further contributing to its cost overruns, HL&P hired Brown & Root, a contractor without previous nuclear experience, and failed to provide adequate quality control. HL&P's coal construction costs appear reasonable. Its need for new coal plants, however, is debatable.
dc.format.digitalOriginreformatted digital
dc.format.extent242 pp
dc.identifier.callnoThesis Econ. 1984 Krasner
dc.identifier.citationKrasner, Thomas P.. "Scale effects in the Southern Electric Utility industry and the performance of Houston Lighting and Power relative to other southern utilities." (1984) Master’s Thesis, Rice University. <a href="https://hdl.handle.net/1911/104380">https://hdl.handle.net/1911/104380</a>.
dc.identifier.digitalRICE2013
dc.identifier.urihttps://hdl.handle.net/1911/104380
dc.language.isoeng
dc.rightsCopyright is held by the author, unless otherwise indicated. Permission to reuse, publish, or reproduce the work beyond the bounds of fair use or other exemptions to copyright law must be obtained from the copyright holder.
dc.titleScale effects in the Southern Electric Utility industry and the performance of Houston Lighting and Power relative to other southern utilities
dc.typeThesis
dc.type.materialText
thesis.degree.departmentEconomics
thesis.degree.disciplineSocial Sciences
thesis.degree.grantorRice University
thesis.degree.levelMasters
thesis.degree.nameMaster of Arts
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