Portions of this document may be illegible in electronic image products. Images are produced frpm the best available original dOl.umf!Xlt AbstractOperations and Maintenance (O&M) expenditures by nuclear power plant owner/operators possess a very logical and vital link in considerations relating to plant safety and reliability. Since the determinants of O&M outlays are considerable and varied, the potential linkages to plant safety, both directly and indirectly, can likewise be substantial. One significant issue before the U.S. Nuclear Regulatory Commission is the impact, if my, on O&M spending from state programs that attempt to improve plant operating performance, and how and to what extent these programs may affect plant safety and pose public health risks. A prerequisite to understanding these linkages is to develop a framework to analyze the elements that affect the expenditures that are incurred in the post-construction, operating experience of plants. The rationale for analyzing the determinants of fixed O&M outlays at plants is strengthened further by the recognition of the dramatic escalation of these costs during much of the operating lives of the reactor units. The cost performance of nuclear power plants in the United States was considerably worse than the industry and regulators anticipated during much of the 1970s and 1980s. Although the expenditure trends have seemingly slowed, continuing analysis is justified by the recognition of continuing regulatory changes and the re-structuring of the entire electric utility industry.The purpose of this study is to examine the role and degree of impacts from state promulgated economic incentive programs (EIPs) on plant O&M spending. A multivariate regression framework is specified, and the model is estimated on industry data over a five-year period, 1986-1990. Explanatory variables for the O&M spending model include plant characteristics, regulatory effects, financial strength factors, replacement power costs, and the performance incentive programs. EIPs are found to have statistically significant effects on plant O&M outlays, albeit small in relation to other factors. Moreover, the results indicate that the relatively financially weaker firms are more sensitive in their O&M spending to the presence of such programs. Formulations for linking spending behavior and EIPs with plant safety performance remains for future analysis. SummaryThis study presents an analysis of the determinants of non-fuel operations and maintenance expenses (O&M) at commercial nuclear power plants for [1986][1987][1988][1989][1990]. O&M expenditures by plant owner/operators possess a very logical and vital link in considerations relating to plant safety. Skimping on O&M functions to meet a wide array of objectives or having expenditures subject to a variety of constraints poses potential questions about the resulting impact on public health and safety. Alternatively, overspending on a plant may unnecessarily drive up costs and ultimately increase rates to ratepayers. Since the d...