Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Zeuspaul who wrote (84927)	1/22/2001 7:14:52 AM
From: Second_Titan	Read Replies (1) \| Respond to of 95453

Zuespaul GPU There are some striking similarities between EIX PCG & GPU and their respective regulatory environment. GPU sold their generating assets for a song to Sithe, & EIX. Sithe turned around in less than a year and sold them to REI for a substantial profit. GPU was glad to dump the costly union plants to a new owner who could do more with the plants than GPU would be permitted to do. I am sure Duke can do more with former PCG employees than PCG could ever have. I think EIX actually bought a GPU plant, Homer Station. But the mind set was similar, electricity will be plentiful and cheap so why be stuck with these costly assets? PCG lost ?$890 million at least in their foray into Texas gas operations, GPU has similar blunders with international acquisitions. In the end GPU had to dump most of its deregulated assets (national & international) and find a buyer (FE) who owned power plants so that instead of being exposed to Pennsylvania's PUC, they could take advantage of it with FE's generation in PA & the PJM markets. As evidenced by the amount of plants under construction in the area, PA & NJ have more reasonable environments. Fortunately it seems CA has alarmed NY State & city and they seem to see the light (or the potential lack of it) and may stop delaying plants. I am not very familiar with NY's problems, but for example going by news channels in NYC BANANA & NIMBY is a big problem. Another thing in common with the three deregulated companies owned by PCG , REI, EIX & GPU is their initial forays into foriegn markets resulted in many costly mistakes. Just like the Japanese who came to the US like drunken sailors with pockets full of money and overpaid for US assets during their boom times, only to sell them again in a short time for substantial losses, these utilities did the same thing and they are dumping their mistakes like hot potatoes now. So IMO, California citizens are responsible for the mismanagement of their energy policy. Dont blame "Deregulation" , blame yourselves for electing fools and letting them run free and bring your State to the brink of disaster.