DocumentCode :
1041683
Title :
Corporate Models - A New Tool for Planning
Author :
Wood, A.J.
Author_Institution :
Power Technologies, Inc.
Issue :
2
fYear :
1971
fDate :
3/1/1971 12:00:00 AM
Firstpage :
401
Lastpage :
408
Abstract :
This paper discusses the role of corporate models in the planning of the growth and operation of electric utilities. This new tool is a major addition to the methods available to the engineer, financial analyst and business manager to use in the investigation of alternate courses of action for strategic planning, tactical planning and situations involving operational planning and control problems. These models include consideration of the forecasts of the expected company growth in terms of requirements for new service, load growth in existing customer groups, requirements for system expansion, operating expenses and revenues, and the resultant interval cash flows and requirements for new external funds. These models produce forecasts of financial reports, requirements for external financing and any specialized reports desired. They include a representation of the accounting system as well as the business and production sectors. This paper illustrates how these models may be used to supplement, not supplant, the usual engineering economy study and compares results produced by model studies and a revenue requirements analysis. In addition, a discussion is given of areas, such as lease financing, which are difficult to handle with the usual engineering economy approach but which model can accommodate. Finally, the paper offers suggestions concerning the steps required to develop and use corporate models within the electric utility.
Keywords :
Business; Companies; Economic forecasting; Engineering management; Financial management; Load forecasting; Power industry; Predictive models; Production systems; Strategic planning;
fLanguage :
English
Journal_Title :
Power Apparatus and Systems, IEEE Transactions on
Publisher :
ieee
ISSN :
0018-9510
Type :
jour
DOI :
10.1109/TPAS.1971.293018
Filename :
4074351
Link To Document :
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