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Politics : High Tolerance Plasticity

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To: gamesmistress who wrote (2873)	4/4/2001 10:51:35 PM
From: Second_Titan	Read Replies (1) of 23153

QF'cked they maybe. I imagine these qualifying facilities are under long term contracts for sales. As such I wonder how many would have long term NG contracts established. I know of one plant who got smoked severally this Winter because they never expected gas prices to get this high this fast and cannot pass the costs on. Losses in excess of $4K an hour for a small plant <100 MW. $4k * ~2,000 hours in the Winter quarter. Its not chump change when normal revenues are <$40 million annually with 3 more quarters to go. On one hand they maybe making money by not taking the gas. On the other hand if they did not protect adequately with gas prices they may not want to operate. Either way most of these plants are old, so I dont know how much debt they have. But normally these plants are highly leveraged, so I wonder if any are sweating debt service real bad.

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