‘Crybabies’ commentary right on target, reader says

By Greg A. Haas
Equity Analyst

August 24, 2001 — I greatly enjoy EL&P, and as an equity analyst in the power space and former power industry engineer, I want to give you some kudos. I am compelled to write that I found the commentary in the August issue [No crybabies allowed!, August 2001] right on target.

Incredibly, most in the investment community have been hearing nothing but fear and loathing about ‘power plant cancellations’ and unavailability of bank funding in light of the turmoil in the power industry. In just a few sentences, you dispell the funding fears. Well done.

Any chance that EL&P would continue printing such information about financings of power plant projects? Furthermore, if you would ever like to publish information on so-called ‘cancellations’, I believe that would also be highly beneficial.

To give you a tickler, my preliminary research shows new project announcements/ advancements in July outpaced by a factor of over 10x the few cancellations that were publicized.

And in fact, I found the cancellations that did occur were largely due to NIMBY [not in my back yard] concerns and simply resulted in the developers transferring their ordered generator assets to another site for further development a bit further from the offended ‘back yard.’

Thank you in advance, and keep up the good work.

Greg A. Haas
Equity Analyst
Power Technology & Services
Raymond James & Associates
5847 San Felipe Suite 720, Houston, Texas, 77057, ghaas@ecm.rjf.com, Phone: 713-789-3551, Fax: 713-783-4029, http://www.rjf.com.

Editor’s note: Haas is referring to Electric Light & Power Managing Editor Pam Boschee’s commentary column for the August issue of EL&P, in which she discusses the contrast between the continuing panic attack over the energy sector with the sense of calm in bank markets supporting new generation projects.

“Jacob Worenklein, Societe Generale’s global head of project and sectorial finance, said the financing reflected ‘the growing sense of calm in the bank markets regarding the U.S. electricity sector,'” she wrote.

“And now, it’s time for that ‘sense of calm’ to be embraced by others. Starting with California’s Gov. Gray Davis and the Department of Water Resources (DWR). They’re on the brink of becoming confirmed crybabies.”

To read the entire article, visit http://elp.pennnet.com/Articles/Print_TOC.cfm?Section=Articles&SubSection=CurrentIssue.

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