in the industry, the response to such pressures varied. In general though, most utilities experienced financial difficulties. The Moody's average stock price for electric utilities dropped from over $117 per share in 1965 to under $55 in 1980. In addition, electricity prices increased nationwide. During that same period of time, the average price of electricity in the United States almost tripled (Coe et al., 1993, pp. 27-56).
The Arab Oil Embargo changed the public's perceptions about energy. Conservation--also known as demand-side management (DSM)--became a national priority. DSM programs were launched in an effort to shape both the level and pattern of consumption demand: Education programs modified customer consumption, while efforts were made to improve utility system efficiency. In 1970, the U.S. consumed energy at a level of 62.5 thousand British thermal units (Btus) per dollar of gross national product (GNP). However, by 1977, the figure had fallen to 56.8 thousand Btus per dollar of GNP. Between 1973 and 1979, total U.S. energy co
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