Electric Companies Spend Most Of Their Revenue On The Day-to-Day Expenses That Come With Operating A Power Plant.
Most of the revenue electric companies receive goes to pay operating and maintenance costs. Purchased power and fuel are the single largest operating expenses for an electric company. The next largest expense is taxes. The cost of salaries, materials, supplies, services, and a variety of other expenses also must be met. In addition, the company must be compensated for the cost of depreciation, amortization, and the cost of capital, which includes the return paid to debt and equity investors for the use of their money.