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- W112722766 abstract "Plant reliability is an important issue that has been raised frequently in the context of purchased power. Most recently, section 712 of the 1992 Energy Policy Act asked state regulators to explore whether the use of highly leveraged capital structures by exempt wholesale generators (EWGs) threatens reliability. This article shows that the relative reliability of nonutility generators (NUGs) and utility-owned generation varies from case to case. Therefore, absolute statements about NUG reliability as a function of financial leverage are not only difficult to make but also highly suspect. NUG reliability is a contentious issue. Some parties strongly support the view that NUG reliability generally exceeds that of utility-owned generation. Others question this view. Indeed, studies that showed NUG plants to be more reliable than utility-owned generation may have overstated NUG reliability for several reasons. First, NUG plants are, on average, newer than utility plants; newer plants tend to be more reliable. Second, the relatively continuous operation of NUGs causes less wear and tear. And third, NUG reliability data may suffer from a self-selection bias: comprehensive data on utility plant performance exist, but NUG plant performance data have been compiled from survey responses and successful NUGs may have been more likelymore » to respond.« less" @default.
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- W112722766 date "1994-05-15" @default.
- W112722766 modified "2023-09-24" @default.
- W112722766 title "Banking on NUG reliability" @default.
- W112722766 hasPublicationYear "1994" @default.
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