Utilities' Power Prices Could Swing Wildly
All indications point to a sustained period of low prices for wholesale electric power. There will be seasonal variability, but average annual prices will likely remain flat. As a result, generating utilities such as Exelon (EXC), Entergy (ETR), Calpine (CPN) and NRG Energy (NRG) will likely see revenue remain within a tight range until market conditions change. And market conditions will change.
Don't blame the economy for lackluster prices; the markets are also a factor. Deregulated generators rely on power markets for prices and margins. Complicating generators' future are new "circuit breakers" that are being built into the markets to smooth out demand, remove volatility and force market prices to remain low....635 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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