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Paul W. MacAvoy

Corporate Profit and Nuclear Safety : Strategy at Northeast Utilities in the 1990s

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ISBN: 0691119945, 9780691119946
Издательство: Princeton University Press
Год издания: 2004
Страниц: 176
Book Description Northeast Utilities Company adopted an ambitious new competitive strategy in the mid-1980s, seeking to become the low-cost supplier in New England electric power markets bracing for deregulation. Given its high-cost nuclear facilities,doing so required a corporate turnaround. For a decade Northeast faced increasing public and employee resistance to cost cutting at its nuclear plants. Though management achieved many of its goals, curtailing outlays on nuclear operations meant high riskthat the Nuclear Regulatory Commission would close the plants because of frequent, prolonged outages. This is just what happened in 1996. Did management's deliberate cost-containment strategy take nuclear operations to an inevitable regulatory shutdown, and if so, why? Was it the pursuit of executive compensation tied to cost containment that caused undue risk of regulatory shutdown? Paul MacAvoy and Jean Rosenthal describe ten years of corporate performance preceding the...
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