According to a recent report, for the first time, consumers are reducing power usage in order to cope with an economic downturn.
Barclays Capital analyst James Crandall said power companies used to be able to count on residential and commercial customers for steady power usage when economic conditions soured--even when industrial companies had to reduce production (and thereby, power consumption). (See "Utility Sector Low On Power.") For the first time, however, the economy appeared to push people into pulling the plug on unnecessary electricity usage. It might also be that more power-saving appliances and light bulbs are available now or are cheaper than they were in previous recessions.
The $21.39B bid was too low and the bid for NRG falls through.
The $6.2B bid to acquire NRG on October 20th, 2008 displeases shareholders.
New York Times
Exelon, the electric company based in Chicago, will promise on Tuesday to cut greenhouse gas emissions by 2020 by an amount larger than its total emissions in 2008, in a bid to shape the debate on carbon dioxide rules and to get a jump on compliance.
Many academic researchers and nonprofit groups have made proposals for cutting emissions, but Exelon's will be an unusual public presentation devised by a company that hopes to make money in the process. The plan relies heavily on conservation and having existing nuclear plants produce more power, but it includes smaller contributions from wind and sun energy.
The reductions in greenhouse gas emissions will come by making Exelon's operations more efficient, cutting the energy use of its electricity customers and building low-carbon generators that would displace older, less-efficient plants, many operated by rivals, the company said.
One reason for the pledge is to seek credit for actions that cut emissions of other companies, said Exelon's chairman and chief executive, John W. Rowe.
For example, Exelon plans to help the factories that it serves do the same work with less electricity so that some generating stations, owned by Exelon or others, will burn less fuel. Exelon also wants to build generating stations that use natural gas more efficiently to replace coal plants in the Midwest and East -- probably owned by other companies -- that emit far more carbon dioxide.
Dealing with greenhouse gases, while essential, is very costly, Mr. Rowe said. If you have an adequate way of accounting for offsets and displacements, we think we can offset our carbon footprint at a reasonable price.
Some components of the plan, like trying to bolster the output of its nuclear plants, are moves that Exelon would have taken anyway, Mr. Rowe acknowledged Continued at NYT
PECO is now fueling its utility trucks with biodiesel, a blend made from 20% soy oil and 80% normal diesel fuel from Sunoco. With the new blend,the company achieves a 16% reduction in greenhouse gas emissions.
Exelon begins to cut down power generation at a Pennsylvania nuclear plant that is scheduled for shutdown.
Exelon saw its stock price sink as the company agreed to pay out $1 billion in refunds and discounts to customers hit by higher electricity prices in Illinois. Utility rates in the state skyrocketd after they became unregulated as of Jan 1 after a 10-year rate freeze enacted in 1997. Consumers called for rate freezes as many saw utility bills increase dramatically.
In January of 2007 electricity rates were allowed to adjust to market after a years long rate freeze. Illinois legislators responding to pressure from their constituents have ordered utility companies Ameren and Exelon to pay $1B in refunds. Exelon will pay $800B of this amount.
KKR announces a $32B acquisition of TXU, raising speculation that other utilities like Exelon may be the target of a leveraged buyout.
Deregulation and a move to market prices in ComEd's Utility business in Illinois is conditioned upon special concessions including $200M in credits to ComEd's retail customers. This concession may negatively impact earnings in coming quarters.