To: Ken Chapman who wrote (1473 ) 2/12/1998 12:10:00 PM From: shashyazhi Read Replies (2) | Respond to of 6464
To all: Subject: Agreements in the near future Has anybody ever noticed the proliferation of wind generators near Palm Springs? Well, you can buy,or lease one, and sell power back to Edison. It sounds like BAT is referring to something like that here. From the BAT website today: < BAT is working with companies involved in power generation to evaluate impact of Dolphin Pulse Charge technology on heat rates and power generation efficiency. Deregulation of the power industry provides opportunities for use of high efficiency technology to reduce energy production costs. BAT is in a position to share in the income flow from these projects through contribution of technology to potential partners. B.A.T. will soon sign a joint venture agreement that will put B.A.T. in the power generating business. Prototype power generating units are presently being assembled at the CALSTART facility in Burbank. These generating units are easily assembled and converted to Pulse Charge Technology and are like big cash registers after completed. Just connect them to the electric grid system and turn them on. Instant cash flow.> One thing I learned working in the electric utility industry was that there was a high markup on electric power. We spent about $0.06 to generate a megawatt/hour of power, and we sold it at $0.06 for a kilowatt/hour, so we sold it for 1,000 times what it cost to make it, ignoring the cost of the infrastructure required. Now, anybody with a Honda portable generator can hook it into his electric outlet, and turn off every electric appliance in the house. The electric meter will run backwards! And your electric utility company will have to pay you for the power you supplied to the grid at the same rate they would have charged you for it! It would not be quite as simplistic as the above to install a pulse charged diesel generator in your backyard, though. These installations would probably have to be placed in commercial zones, and it would take some time before you had generated enough power to break even on the purchase and installation costs. But if some company agrees to lease these things, well, we could see pulse charge proliferation, with BAT getting the royalties. Ron Holland, BAT engineer, said on Tuesday that an agreement was near. And, if you are skeptical of grass-roots investors supplanting Edison as a major supplier of electric power, think of the possibility of selling those pulse charged diesel generators to third world countries. When I visited China several years ago, one thing I immediately noticed was a lack of electric power. Flying into Shanghai, one of the largest cities in the world, I couldn't find it from the air at night. There was, for all practical purposes, no street lighting, and very few lights whatever! Our tour group could not visit the Ming dynasty tombs because of rotating power blackouts. It was the Ming's day be be in the dark. Clearly BAT has many irons in the fire, some to happen soon, some later, and some maybe never. But the revenue will begin to flow. And, when that happens, the stock will find a realistic valuation.