The next section of the publication discusses gener-ator and nongenerator electric utilities separately. For example, significant plant production expenses would not exist for nongenerator electric utilities because existing production plant expenses are mainly maintenance costs for standby plants. It should be noted that both generator and nongenerator electric utilities report according to varying fiscal years that are determined by their political localities. Because nongenerator electric utilities purchase all their power needs, they have less plant investment than generator electric utilities per dollar of revenue generated. For generators, depreciation of plant is shown directly, since all or some of their generating needs are met by their own plants.
Financing is also different for the two groups.
Generator electric utilities, with their larger plant invest-ments per dollar of revenue, have more debt per dollar of revenue than nongenerator electric utilities. The large amount of debt creates greater interest expense.