Skip to main content

The NEI Morning Clip File

Image
By Janice
Here are some of the news clips we're reading at NEI this morning. Our talk of record-breaking oil prices is starting to sound like ... well ... a broken record. But that is the news this morning, as prices hit their highest-ever peak of $66.15 before dropping down to $66.05.

U.S. oil has risen 52 percent since the start of the year. And the stage is set for further gains, with no let-up seen in global demand growth and no signs that $60-plus oil is harming the economy of the world's largest consumer, the United States.
Michael Wittner, head of energy market research at Calyon, made a prediction:
"We're going to have a very strong price environment until the steam is taken out of demand or until investment catches up and restores a spare capacity cushion to production and refining."
Until that happens, keep checking NEI's clip file for daily record highs.

In other news, Morningstar Inc., which provides independent investment research, says the "Energy Policy Act has something for everyone," but especially for utilities:

On the regulatory front, the Energy Policy Act commits to a major utility regulation overhaul. First and foremost, it repeals the Public Utilities Holding Company Act (PUHCA) of 1935. That bill had forced utilities with service territories in multiple states to register with and be regulated by the SEC. Eliminating this requirement has the potential to reduce the filing and compliance costs of currently proposed mergers. ... The repeal of PUHCA has received lots of attention by Wall Street, as its elimination is seen as a catalyst for increased merger and acquisition activity in the sector.

... The Energy Policy Act also revises utility purchase requirements under the Public Utility Regulatory Policies Act of 1978 (PURPA). Under PURPA, utilities are required to make mandatory energy purchases from certain outside generators called qualifying facilities. These mandatory purchases limit the ability of regulated utilities to grow earnings by expanding regulated generation assets. The bill allows utilities to either restructure or eliminate these contracts under certain conditions, something that paves the way for additional regulated generation investments.
Morningstar also highlights how the energy legislation benefits nuclear, coal and hydroelectric power, as well as renewables.

Come back this afternoon for more news from the NEI Clip File.

Technorati tags: , , , , ,

Comments

Post a Comment

Popular posts from this blog

Activists' Claims Distort Facts about Advanced Reactor Design

By
Below is from our rapid response team . Yesterday, regional anti-nuclear organizations asked federal nuclear energy regulators to launch an investigation into what it claims are “newly identified flaws” in Westinghouse’s advanced reactor design, the AP1000. During a teleconference releasing a report on the subject, participants urged the Nuclear Regulatory Commission to suspend license reviews of proposed AP1000 reactors. In its news release, even the groups making these allegations provide conflicting information on its findings. In one instance, the groups cite “dozens of corrosion holes” at reactor vessels and in another says that eight holes have been documented. In all cases, there is another containment mechanism that would provide a barrier to radiation release. Below, we examine why these claims are unwarranted and why the AP1000 design certification process should continue as designated by the NRC. Myth: In the AP1000 reactor design, the gap between the shield bu...
23 comments
Read more

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

By
Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...
Post a Comment
Read more

Wednesday Update

By
From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...
Post a Comment
Read more