October 2007
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Patsy Wurster
I'm pleased to introduce our third annual Platts Financing U.S. Power Conference Insight. In this issue of Insight you will see how a variety of authorities view investment trends and hurdles associated with climate change. Where are the real opportunities in the power sector? What role will new renewable energy projects and new technologies to lower CO2 levels play in the power sector? What financial impact can be expected with mandatory carbon controls? What legislation can be expected to enforce these controls? What role will efficiency and nuclear power have in the quest for carbon control? These issues are discussed in-depth in this October issue of Insight. Read More
Theodore F. Craver, Jr., is the president and CEO of Edison Mission Group (EMG), which manages the competitive power generation business of Edison International. EMG owns and operates independent power production facilities and provides capital and financial services supporting the growth of energy and infrastructure projects and services. Previously, Craver was executive vice president of parent company Edison International. He serves on the board of directors of the Electric Power Supply Association. Read More
R. Thomas Hoffmann, Partner and Co-Head, Energy and Project Finance Group, and Darin Lowder, Associate, Energy and Project Finance Group, Ballard Spahr Andrews & Ingersoll LLP
THE RULES AND RISKS ARE RAPIDLY evolving for financing new power plants and acquisitions. Read More
Roger Kranenburg, CFA, Director, Business Development, Edison Electric Institute
CONCERNS OVER GLOBAL CLIMATE CHANGE and rising energy prices are boosting interest in renewable energy at both the state and the federal level. As of July 2007, 24 states and the District of Columbia have created renewable portfolio standards (RPS) that require a certain percentage of their electricity be generated from renewables. Three more have voluntary programs. And Congress is now discussing whether the federal government should mandate that the nation as a whole generate a set amount of its electricty using renewables. Read More
Ted Craver, Chief Executive Officer, Edison Mission Group
OVER A RECENT LUNCH, THE LEADER OF A respected environmental group and I were talking about our mutual interest in better educating consumers and policymakers about the challenges of providing for a reliable, clean and affordable supply of electricity. At one point, my friend said, "We do a lot of consumer surveys, and you know where people think their electricity comes from? The wall." Read More
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Chris Goncalves and Patrick Hurley, Navigant Consulting
LOOKING FORWARD TO THE NEXT TWO decades, three trends will have material impact on both new and existing power plants in the U.S.: Read More
By Tim McClive, Director, Power Markets & Forecasting, Pace
THE DEVELOPMENT OF INTEGRATED Gasification Combined Cycle ("IGCC") technology as a promising new generating source has been debated for several years, and the reason why is obvious. Continued use of coal addresses energy-independence and national security concerns, and the potential for IGCC plants to incorporate carbon capture and sequestration ("CCS") is an advantage to conventional coal plants with regard to reducing CO2 emission levels that are contributing to global warming concerns. However, the prospect for the technology to become a real factor in meeting generation growth over the next decade is very speculative, at best. The problem is that cost uncertainty has made financing of IGCC projects difficult, if not impossible. This is frustrating developers and putting this promising technology at significant risk. Read More
Swami Venkataraman, Director, Corporate and Government Ratings, Standard & Poor's
INDUSTRY TODAY GENERALLY ACCEPTS THE inevitability of mandatory carbon controls and is now seeking to influence the final form of these controls and negotiate the future participation of developing nations in a global carbon regime. Credit consequences may result as restrictions on greenhouse gas (GHG) emissions causing significant increases in capital costs and/or reductions in profitability. Standard & Poor's sees carbon controls impacting power sector credit quality globally in four broad ways, which we summarize below. For a more detailed discussion, please refer to Standard & Poor's CreditWeek special issue of May 23, 2007 titled "The Credit Impact of Climate Change". Read More
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