A perceptual survey of the S and P Purchased Power Credit Risk Policy

In November 1991, Standard and Poor's commissioned UtiliVentures Inc. to conduct a survey among experts in the purchased power industry in order to determine their views on its recently released Purchased power Credit Risk Policy and their general views on purchased power. Respondents for the survey were drawn from attendees to the S and P - sponsored seminars on Emerging Issues for Independent Power held in October 1991 in New York, Los Angeles and San Francisco. The seminars examined the rationale behind the new Purchased Power Credit Policy and how the policy is to be implemented. While the survey is not a scientifically drawn sample, it includes respondents from all key industry groups and is, the author believes, representative of the attendees. The survey findings make generalizations about industry practices which are based on the perceptions of these individuals. It thus identifies perceptual realities: what people believe about the issues underlying the buy vs. build debate, not what others in the industry are saying they should believe. This distinction is vital, because it is the beliefs of these individuals that will shape the evolving purchased power industry. The survey was designed to accomplish three principal goals: (1) To develop systematically a base of information about what people think of the risks and opportunities in the purchased power industry and to determine the extent to which the S and P purchased Power Credit Policy incorporates these views. (2) To identify whether and to what extent respondents value the S and P Policy and how they think it might affect the industry. (3) To use the survey findings to adjust and fine tune the S and P Policy and to develop new ways and improve existing ways to educate and inform the industry about what the Policy intends to accomplish