Public Utility Economics

Public utilities have long employed economists to forecast demand and analyze industry regulation. Recent changes in the competitive structure of the industry should only serve to increase the industry's demand for people with training in economics. The new mix of competition and regulation (with an emphasis on competition) provide a new niche for the economist in supply-side analysis. Under the old regulated structure economists primarily focused their attention on demand side analysis in the industry. Public utility economists take on a number of tasks including cost analysis, demand forecasting, demand-side management, technology assessment, and market analysis. In addition, economists are essential in developing and defending a public utility's rate structure. Economists that move into public utility management positions are vital to the firm's debt management.

To work in the public utility industry it is essential to have excellent quantitative, computer, and communication skills.

Recommended courses:

Economics courses

• ECO 301 - Intermediate Microeconomics
• Eco 311 - Mathematical Economics
• ECO 312 - Introduction to Econometrics
• ECO 380 - Industrial Organization
• ECO 381 - The Economics of Business Regulation

Quantitative and computer courses

• MAT 158 and 258 - Introduction to Statistics A and B, or
• *MAT 354 and 454 - Mathematical Statistics A and B
• MAT 351 - Introduction to Forecasting
• CSC 101 - Introduction to computing
• CSC 120 or 212 - Introduction to programming / Principles of computing

Other suggested courses

• BUS 201 and 202 - Principles of Accounting I and II
• BUS 340 - Accounting for Nonprofit Organizations