The regional markets for electricity in the U.S. are more messed up than
many readers probably realize. Although the power stays on, the
incentives and pricing structures have led to capacity imbalances and
the prospects for more problems down the line. That's a good news / bad
news situation for an independent producer like Calpine (CPN)
- the good news is that this company's very efficient gas-fired
generation fleet can generate attractive cash flows when pricing gets
better, but the bad news is that there is little visibility on those
price improvements and regulators keep trying to postpone the day of
reckoning.
Read the full article here:
Calpine Offers Some Upside To More Realistic Power Pricing
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