Date of Award
Master of Science in Management Engineering - (M.S.)
Industrial and Management Engineering
A major portion of new electric generating capacity will be nuclear powered. The change to nuclear power will require large outlays of capital not required with conventional fuels to finance nuclear fuel inventories. Nuclear fuel financing requirements are unique because nuclear fuel is not consumed in the same manner as conventional fuels. Financing has not been a problem to date because nuclear fuel can be obtained only through lease from the Atomic Energy Commission. This arrangement will be terminated by June 30, 1973 and from that date on all nuclear fuel must be privately owned. Electric utilities have shown an interest in continuing leasing arrangements with the government's role as lessor being assumed by private suppliers. Leasing and other financing alternatives available to the utilities are compared using the Minimum Revenue Requirements Discipline. It is shown that the alternatives for leasing nuclear fuel produce higher revenue requirements than does ownership by the utility. A financing plan is proposed that can be tailored to the specific requirements of the utility. Legal and accounting uncertainties that presently surround the financing of nuclear fuel are presented to show how these intangible factors may have a greater influence on the decision to lease than the long-range economic advantage of fuel ownership.
Lewis, Peter A., "Financing the nuclear fuel requirements of public utilities" (1969). Theses. 1757.