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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Scumbria who wrote (136995)	5/22/2001 11:42:20 AM
From: pgerassi	Respond to of 1579908

Dear Scumbria: Obviously a big lie as a couple of miles is in truth over 1000, the price quoted ($1) is not correct (low) for the last two years. Also note that NG prices are quite inelastic, to reduce demand by 1% you have to increase price by 20%. A shortage of just 13% can cause a 10 time hike in the price which goes down slowly over time as usage is switched to other sources or curtailed. But the difference is only about 4 times compared to the rest of the country, thus a shortage of only 8% to 9% is currently being experienced. Furthermore as all of the new generating plants are NG turbines, the shortage will get worse. You can only pump so much gas down a given pipe. Also note that of the plants closed, some were with plentiful coal, geothermal, and non NG power production (NG peaking, which by the definition only runs a few hours a day (that is what they mean by peaking power)). Peaking power is the highest cost power production method. CHP power is one of the lowest for the same type of fuel. They are just digging themselves deeper in as the price of NG is going to skyrocket even more without another pipeline. I guess some NIMBYs and all BANANAs are going to lose. Pete