New Power Plants Point To Higher Prices

It has been a tough year for power producers. According to the U.S. Energy Information Administration (EIA), the nation's net capacity is stagnated. So far, in 2013, there have been significant additions to the generating fleet, but there were also retirements. It turns out additions exceeded retirements by less than 0.05%. However, looking at the data, a pattern emerges that suggest higher energy prices could be on the horizon.

Admittedly, the emerging pattern relies on limited data. However, that data is consistent with the larger pattern I described in "When It Comes to Nat Gas, Consider the Landscape." The larger pattern was an historic perspective. It indicated a significant reserve capacity in natural gas, which pointed to strong disincentives for utilities to build new gas turbines....608 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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