01/04/2002

WSJ: Energy Firms Cut Back Building Plans

 

NEW YORK (Reuters) - Power companies are scaling back plans to build new plants to deal with sliding wholesale electricity prices and questions about heavy corporate debt levels, The Wall Street Journal reported on Friday.

Data by compiled by a research group indicated that about 18 percent of announced projects are defunct, double the figure from last year, the newspaper said in its online edition.

This fall-off could pose a threat to the United States when the country emerges from its ongoing recession and demand for electricity picks up, it said.

Energy trader Enron Corp.'s  dramatic meltdown has hurt the power industry in recent months and forced many to cut spending. Once high-flying Enron filed for Chapter 11 bankruptcy in December after it revealing irregularities in the way it did its accounting.

Rivals Mirant Corp., Dynegy Inc.  and El Paso Corp., have all said they would scale back some projects.

Calpine Corp. is expected to make a similar announcement later this month, The Wall Street Journal said.

The newspaper cited data by Energy Insight, a Colorado-based unit of McGraw-Hill Cos. , as showing that 91,139 megawatts of generating plant, out of a total announced portfolio of 503,780 megawatts, had been scrapped or delayed by the end of 2001.

In 2000, the industry had put off or canceled 30,909 megawatts of capacity, which equals about 10 percent of the announced total, it added.

Energy Insight's numbers are based on company releases and may understate marketplace conditions, the newspaper said.

 

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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.

Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


Mitsubishi Electric’s H2i R2-Series heat pumps provide 100% heating capacity down to 0° F and simultaneous heating and cooling down to -4° F delivering year-round comfort, regardless of climate zone.

 
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