To: American Spirit who wrote (5712 ) 8/5/2001 3:02:07 PM From: Lazarus_Long Respond to of 93284 The Coming Energy Glut Anti-American Spirit: Hope you see this. You Should. Do you get Barron's?interactive.wsj.com Too Much Power? The utility industry's in a building boom. Why skeptics fear a bust. By Harlan S. Byrne Hardly a day went by last year without an announcement that a new electric power plant had been planned or put under construction somewhere in the U.S. And who could blame the utility industry for its zealous building binge? Politicians were wringing their hands about an energy crisis in full view of the television cameras. The price of electricity was surging from Montauk to Malibu. Meanwhile, all across California the seething citizenry was sitting in the dark. In recent months, however, the blackouts have abated and the lights have come on again. Electric bills are falling and the politicians have moved on. But the utility industry's troubles are only just beginning, say several consulting firms and some candid, and canny, insiders. The industry, they fear, is in the midst of a building boom that could result in a widespread financial bust. By some counts the power industry plans to add as much as 290,000 megawatts of generating capacity over the next six years, which would represent an increase of almost 40% to current capacity of 760,000 megawatts of power. At the same time, the forward price curve for electric power, which tracks bid and asked prices for power delivered at specified future points, has been trending down. This has led some industry observers to predict a power glut, with potentially ugly consequences for firms that are forced to carry unused generating capacity. That's just the first three paragraphs. Get Barron's if you can. This is called "the free market at work."