Electric utilities fear they cannot recover needed capital-investment and operating costs through their rate bases, says a new survey of more than 600 U.S. utility-executive respondents. That concern rose to third from ninth place among the top-10 issues cited by executives in consultant Black & Veatch's 2012 industry report, issued on May 8.
Investor-owned utilities "are under tremendous pressure" to complete capital-intensive programs to boost reliability and environmental compliance, says Dean Oskvig, CEO of B&V's energy unit. Regulated rates greatly influence their ability to reinvest in infrastructure, he notes.