FINREG : a financialregulatory model for utility capacity expansion plan evaluation

A corporate financial/regulatory model, called FINREG, is presented to simulate a utility's accounting practices, financial policy and constraints, and ratemaking environment. For each year of simulation FINREG will yield as output electricity rates, pro-forma accounting statements, selected accounting ratios, and the accumulated present value of dividends less common stock offerings. The model is used to perform a financial evaluation of two feasible expansion options for Boston Edison Company.