A Computer Model for Use in Evaluating Various Electric Utility Capital Expansion Plans

Date of Submission

1974

Document Type

Thesis

Degree Name

Master of Business Administration (MBA)

Department

Management

Advisor

Ronald Haberman

LCSH

Electric power production, Electric power-plants --Finance

Call No. at the Univ. of New Haven Library

AS 36 .N29 Bus. Adm. 1975 no.2

Abstract

The planning of generation and transmission capacity for the growing requirements of electric utilities has become an extremely complex undertaking. The magnitude of the alternative costs, the length of time which must be considered and the number of influential variables bearing on the decision have created a task for the planning engineer which no longer can be solved with short cut approximations. The modern planning engineer requires more complete information on which to base his decisions.

The computer model presented here was developed to provide the engineer with the information he requires to select the best alternative. In writing the programs the historical manual approximations were discarded in an attempt to fully utilize the potential of modern computers. The resulting model allows the user complete flexibility in defining the set of alternatives in question and provides detailed output for a decision base. All variables that could be identified as well as the various accounting methods currently in practice have been included to insure user confidence.

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