3.3 "Leasing" the SPS An alternative to ownership through outright purchase of the SPS would be provided by utility "leasing" of the plant. The SPS would be owned by an independent organization and its power sold to the utilities under the condition that they purchase energy at a constant rate throughout the plant life (except while SPS was off-line for scheduled maintenance). The payment (rent) would be due even if a particular utility could not or wished not to accept the SPS energy. There are several advantages to this approach: • The incremental cost of SPS energy would be zero (except for negligible transmission costs) and the SPS energy could be expected to be used to meet the base load. Payment would be required, like any other fixed cost, no matter how often the SPS were used. • Many of those utilities which have semi-automatic fuel adjustment clauses are allowed to include the cost of purchased power in their calculation of the fuel rate. • Operating costs are usually included in the electric power rates without any provision for a return to utility stockholders. Since the rental costs are likely to be passed on to the consumer without a mark-up, the effect of this approach on utility rates would probably be the same as if the utility owned the equipment itself. • The utility would not have to exhaust its credit in order to provide the large capital required to construct an SPS. • The rental fees would increase only slightly due to inflation.
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