October 2008
Main
Sincerely,
I'm pleased to introduce our fourth annual Platts Financing US Power Conference Insight. In this issue of Insight a variety of authorities will discuss how high construction costs and the credit crunch are impacting investment in new power generation. In their bids for the US presidency both John McCain and Barack Obama have presented energy plans for their new administration. Both plans contain some form of carbon cap and trade programs. How will their new energy policy potentially change the landscape for investment in nuclear, new renewable sources and clean coal technologies over the next four years? These issues are discussed in-depth in this October issue of Insight. Read More
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R. Thomas Hoffmann, Co-Partner in Charge, Energy and Project Finance Group, and Matthew E. Ross, Of Counsel, Energy and Project Finance Group, Ballard Spahr Andrews & Ingersoll LLP
COMPANIES THAT DEVELOP OR INVEST IN fossil fuel power projects need to adopt carbon mitigation and risk management strategies for their portfolios, not only to prepare for legislation capping the emission of carbon dioxide, but also to satisfy lenders and investors. This is so for two interconnected reasons. Read More
David Patton, P.E., Vice President, R. W. Beck, Inc.
IN A RECENT PRESENTATION BEFORE ITS commissioners, FERC staff indicated that "two major factors pushing the costs of electric generation higher are increased fuel costs and increased cost for new construction." These factors are affecting all regions of the country to varying degrees. Read More
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John E. Shelk, President and CEO, Electric Power Supply Association
THERE'S NO DISPUTING THE FACT THAT THE next several decades will be a time of unprecedented investment and construction for the power industry. Even as the competitive market helps facilitate decreased energy consumption by encouraging innovation, improved energy efficiency and the tools to wisely manage energy use, the continued growth of personal technology and population create the need for more electricity. Forecasts for the amount of capital that will be required to build new power plants or expand existing plants between 2010 and 2030 vary from $350 billion to as high as $750 billion with advanced carbon sequestration technologies.1 The estimates for generation, transmission and distribution infrastructure combined, before taking carbon into account, start at $1 trillion, exceeding the entire amount invested in the electricity system in our nation's history.2
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Charles Tooman, Managing Consultant, Global Energy Practice, PA Consulting Group
A VARIETY OF COMPLEX MARKET DYNAMICS —from volatile commodity prices and new price levels, to the presence of new market entrants, to aging infrastructure and increasing operating costs, to evolving regulatory compliance requirements and standards—have placed renewed focus on utility and merchant energy companies' commercial and asset management strategies. Companies must account for these market dynamics, while seeking truly differentiated commercial strategies around current and prospective portfolios of assets (contractual and physical), and also closely considering factors such as the costs of asset maintenance and the timing of retirements and market recovery (among others). Read More
James K. Martin, Senior Vice President, Dominion Resources
THINK AMERICAN HISTORY. CHANCES ARE good that Virginia comes to mind. Its role in our nation's birth and growth is rich, colorful and widely known. Think about America's future. Chances are good that your thoughts will turn to energy. High prices keep our industry's challenges in the front-row seats of everyday concerns. Read More
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