Good news for NG heavy stocks like SFY:
Monday June 11, 9:07 am Eastern Time
Press Release
Unprecedented 183,000 MW of New Power Capacity-- Equivalent of 365 Utility-Scale Plants--Slated to Enter Service in U.S. Over Next Three Years, According to Platts
Estimated Capital Cost of Up to $130-Billion
WASHINGTON, D.C.--(BUSINESS WIRE)--June 11, 2001-- An unprecedented 183,000 megawatts (MW) of new electric generating capacity is planned in the United States over the next three years --the equivalent of 365 utility-scale, 500-MW plants -- at a total estimated cost of between $100-billion and $130-billion, according to data released by Platts, the energy market information division of The McGraw-Hill Companies (NYSE: MHP - news).
The new additions are notable for their lack of fuel diversity, with 95% of the new capacity fired by natural gas. The total includes 48,000 MW in 2001, 66,000 MW in 2002, and 69,000 MW in 2002. The previous one-year U.S. record of new plants coming on-line was 43,000 MW in 1974. Current installed capacity in the U.S. is about 870,000 MW.
About 11,000 MW, or 6% of the three-year national total, is represented by new capacity in California. The latest data released by Platts also shows that 27,220 MW of new capacity was brought on-line in the U.S. in 2000, with 93% fired by natural gas and 5% by oil.
The new national three-year figures represent a 54% increase from the June 2000 estimate and reflect a continuous stream of new plant announcements across the country over the last year.
``With the notable exception of California, this construction surge should provide most of the United States with adequate peaking and intermediate capacity over the next few years,'' said Christopher Bergesen, Platts UDI Editorial Director. However, ``Policy makers have already noted that this huge cohort of new plants entirely lacks the fuel diversity that characterized the early- and mid-1970s power plant building boom,'' he added.
Meanwhile, California is expected to have some relief from supply interruptions by mid-summer with the addition of 1,785 MW, but is not expected to have an adequate reserve margin until summer 2003.
The new plant data are extracted from the Platts UDI ``World Electric Power Plants Data Base.'' This large file of almost 100,000 records is maintained on a company-by-company, unit-by-unit basis using direct surveys and a wide variety of other sources.
The new power plants data set may be ordered from the UDI Aisle (Aisle 11) in the Platts Energy InfoStore at www.platts.com, or by calling 212-438-4012.
Platts is the world's largest and most authoritative provider of energy market information, with more than 325 professionals worldwide and products ranging from real-time and Internet-based news services, to market reports, databases, magazines and conferences. Platts services cover the oil, petrochemical, natural gas, electricity, nuclear power, coal and metals markets. Every day more than $10 billion of trading activity and term contract sales are based on Platts' price assessments. Additional information is available at www.platts.com and www.plattsmetals.com.
Founded in 1888, The McGraw-Hill Companies is a global information services provider meeting worldwide needs in financial services, education and business-to-business information through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 300 offices in 33 countries. Sales in 2000 were $4.3 billion. Additional information is available at www.mcgraw-hill.com.
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