ABSTRACT
In Chapter 2, bonds, short-term financing, and a variety of other revenue sources were identified as a means of financing capital requirements. At one time, the process of financing was relatively simple; capital requirements were estimated and either traditional bonds or short-term notes were issued until permanent financing became attractive. In today’s complex financing environment, however, it is advantageous to evaluate the full array of alternative financing methods. Utility management and governing boards are confronted with the complex task of evaluating many alternative financial plans with long-range and short-term debt instruments.
