|
Category: Investment, Natural Gas
Florida Power and Light (FPL) Rate Increase Rejection a Sign of Things to Come
January 14, 2010 - Energy Investing Update with Karl Miller Natural Gas the Winner Karl W. Miller a senior energy executive and institutional investor today issued the following statement through his advisors, regarding the FPL rate increase rejection and pending rate increase cases pending at almost every Public Utilities Commission in each State of the U.S.
Mr. Miller warned investors in his analysis U.S. Renewable Energy: A Self-Inflicted Crisis in the Making, published June 29, 2009 (http://www.investorideas.com/News/062909c.asp) that there were substantial "hidden pass through" cost of the current Renewable and Green Energy initiative, in addition to normal capital expenditures, which were fast becoming a liability to regulated utilities, and had not been fully realized by the retail consumer through substantial regulated rate increases, which will be required to the tune of billions of dollars across the U.S.
Mr. Miller further warned that while some of these regulated rate increases were pending in almost every State in the U.S. and involved almost every major and mid cap regulated utility holding company, the majority of the required pass through costs remained hidden in what he referred to as a combination of "Phantom Contracts" and "Credible Contracts" and other capital expenditures. Mr. Miller referred to this as window dressing.
The Florida Public Utilities outright rejection of FPLs substantial rate increase request is a clear sign that three (3) factors are at play across the U.S. and will be repeated across the U.S. Public Utilities Commissions across the U.S.; i) The consumer is not willing to accept outrageous rate increases in their electricity costs, especially on the backside of a recession; ii) that the renewable energy industry is going to suffer a tremendous setback as without rate increases, they cant subsidize loss making wind, solar and geothermal investments; iii) and most importantly, natural gas will benefit from this as the U.S already has the required natural gas plants built in most consuming areas, has the gas supply and will only require minor annual fuel rate adjustment requests to the regulators.
The net result is natural gas wins in all scenarios, as it is the marginal fuel, which is already accepted by the regulators at individual State Public Utilities Commissions across the U.S.
Mr. Millers Office
Disclaimer:
This column, Energy Commentary from Karl Miller, is the opinion of Karl Miller.
Content found in the articles is subject to the terms found in the InvestorIdeas.com disclaimer and does not represent a recommendation of investment advice. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.
Published at the Investor Ideas Newswire
Investors: Sign up for free newsletter, stock and sector news alerts at Investorideas.com - Or publish your own stock picks and share your investing and trading ideas with other investors. Publish your investor ideas today!
Investorideas.com goal for 2010: 'One Million Members Stronger', empowering one million investors to invest in innovation and technology for a better world. Join us today!
Disclaimer: The following news is paid for and /or published as information only for our readers. Investorideas.com is a third party publisher of news and research .Our sites do not make recommendations, but offer information portals to research news, articles, stock lists and recent research. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. This site is currently compensated by featured companies, news submissions and online advertising.
|
