The effects of SFAS no.90 on nuclear electric utilities

This paper studies the effect of SFAS No. 90 on electric utilities that were required to record substantial write-offs due to nuclear power plants that had been impaired by regulatory disallowances or abandonments. The paper identifies 57 firms that recorded write-offs required under SFAS No. 90 totaling $17.7 billion. During the period surrounding the release of SFAS NO. 90, many of the affected firms reduced their dividends and their common stock earned somewhat lower returns than similar firms that were not affected by the pronouncement. Other factors are identified that are more plausible explanations for the lower returns and dividend reductions.