The global equity research group at the investment bank
UBS just published a research note concerning Dominion's decision to
close and decommission the Kewaunee Power Station:
In 2011, Kewaunee had a loss of -$39Mn in net income, which D[ominion] excluded from operating earnings. Following a roll-off of the above market PPA at the end of ’13, we had projected that earnings would fall by another ~$65Mn driving negative FCF and minimal EBITDA. We agree that the economics of Kewaunee were uniquely challenged given its small size and regionally depressed power prices.
That's a conclusion that pretty much reinforces
what Dominion had to say earlier today.
4 comments:
When gas prices inevitably go back up, the opposite will be true, and they will have no plant to reap the rewards. Whatever happened to fuel diversity and long-term decision making.
how does that account for Dominion CEOs taking $10+ million in bonuses?
Whatever happened to fuel diversity and long-term decision making.
It interfered with getting the next quarterly bonus.
To the first anonymous-
How are gas prices related to grid prices? Last I checked Kewaunee doesn't burn oil.
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