Applications of Improved Financial Simulation Techniques to the Evaluation of Electric Energy Alternatives for New York State

The increasing financing problems of electric utilities is examined by application of improved financial simulation techniques to alternative generation expansion plans for New York State. Coupling of the financial simulation to an optimizing generation planning program, utilization of a computatlonally efficient interactive graphics system, and capability to automatically seek solutions to financing problems allows evaluation of the relative merits of a wide range of commonly suggested solutions to financing problems. Solutions evaluated include allowing higher returns on equity, construction work in progress (CWIP) in rate base, increased use of normalization of tax benefits, and higher equity ratios.