Tag Archives: death spiral

Southern Company downgraded to sell over Kemper coal and Vogtle nuclear

Time to break out of the utility death spiral by breaking away from cost overruns at Kemper “clean” Coal and the Plant Vogtle nuclear boondoggle and getting on with real renewable solar and wind power.

UBS wrote 5 May 2014, Southern Company: Kemper Tantrums; Reducing to Sell,

Reducing to Sell on continued delays for the Kemper IGCC project

With further delays and increased costs for the Kemper IGCC project resulting in yet another $380M of writedowns (further slippage costing $25M/month) and now the likely loss of $120M-$150M of bonus depreciation as well, we view the current premium P/E multiple as untenable. While the Vogtle nuclear project appears to be on track, the presence of two major risky projects, Continue reading →

Utility-owned rooftop solar: Tom Fanning and Steven Chu agree

Tom Fanning is getting support for his idea of utility-owned rooftop solar. Can we see that tiger team report, Tom? And FPL, how about you get on with this, instead of trying to gouge an unneeded yard-wide methane pipeline through here? Sun, wind, and water can power each U.S. state, so how about FPL in the Sunshine State and Southern Company in the southeast get out in front and lead?

Jeff McMahon wrote for Forbes yesterday, Steven Chu Solves Utility Companies’ Death Spiral,

Utility companies have been looking for new regulations and higher connection charges to save them from a “death spiral” spurred by a surge in rooftop solar installations. Instead, says former Energy Secretary Steven Chu, they should get into the rooftop solar business.

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