profits. The regulatory argument was that today's consumer should not be required to pay the costs of developing the technology required to meet the needs of future consumers.* This situation generally changed about four years ago; however, the fraction of RD&D costs allowed in the rate base still varies from state to state. While it can be argued that substantial benefits might accrue to the utilities from participation in the design, development and testing of those SPS components which will directly affect the SPS utility interface, the utilities' ability to contribute to the development of the support equipment (e.g., launch vehicles) will be limited. Hence, the electric power utilities are unlikely to perceive any legitimate role for themselves in the latter area nor are the regulatory commissions likely to allow the associated costs to be included in the rate base. Electric Power Research Institute The Electric Power Research Institute (EPRI) was formed in 1973 under the voluntary sponsorship of many of the electric utilities - private, public and cooperative. Its mission was to conduct a broad, coordinated program of R&D with the aim of improving electric power production, transmission, distribution, and utilization. The EPRI program emphasis is primarily on those technologies which are likely to have a significant impact on the utilities before 2000. However, it is recognized that very long lead times, on the order of decades for various systems, make it necessary to begin the development of credible technical options decades ahead of the projected need. Three different time frames, indications of when the research results are likely to become commercially available to the utilities, have been defined. These time frames, their present definitions and their approximate allocation of EPRI research funds * ————————— This is the same rationale used to disallow the inclusion of CWIP (Cost of Work in Progress) from the rate base.
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