Restructuring Electricity Markets, Public Power, and Tax-Exempt Bonds: An Economic Analysis
Description:
Tax-exempt bonds subsidize public power's cost of capital and enable it to lower price. The subsidy is economically beneficial (enables public power price to reflect the true cost of electric service) only if the private market fails to provide the correct amount of electricity. In general, the private market does provide the correct amount of electricity; in those cases when it does not, the tax-exempt bond subsidy is unlikely to correct the problem. Tax-exempt bond legislation over the last 3…
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Date:
June 10, 1998
Creator:
Zimmerman, Dennis
Partner:
UNT Libraries Government Documents Department