Resource Procurement: A Case Study of US Electric Utilities

In the USA, electric utilities and their fuel suppliers-notably those providing coal and uranium — have developed a wide range of arrangements to facilitate the flow of fuel to power-plants. The turbulent operation of fuel markets has provided severe tests of these arrangements. Predictably, the outcomes also have varied considerably. A central goal of the arrangements was to lessen the market risks associated with large-scale ventures to produce the fuels involved. This chapter seeks to review and analyse these electric-utility arrangements to show the implications for planning large-scale ventures.