As I have stated on this board many times, most utilities are publically held; budgets are driven by the total AVERAGE cost of goods + other expenses versus the total amount of revenue.
They are generally governed by a Public Service Commissions that regulate rates, margins and the like on either a yearly or other timeframe.
For example, Ameren/UE has budgeted ~$4.50 as the average cost of their natural gas in their business plan over their 3 and 5 year plans. If the AVERAGE cost goes beyond that, it blows their budget, they can’t make their pre-approved PSC profit margin, and they put their shareholders dividend in jeopardy. And as we all know, most folk buy utility stock for the juicy dividend!
So … volatility in an input resource spells BIG trouble if it bases and then spikes. There is no way to predict AVERAGES anymore.
The President (with Board backing) will go to the stable input commodity to guarantee return. THEY HAVE TO!
So even if it doesn’t stay super high, THEY CAN’T TAKE THE RISK!
This volatility is a super-d-duper moment for coal.
Interesting interview on 60 Minutes this evening, about solar power and other energy alternatives. Basically they said that that solar has been a failure, and it has been a waste of government money. The interesting part of the interview was that the prior director of federal funding for alternative fuels did not disagree? Who knows maybe one of these days an analyst may even say that coal will be required for a long time?
I refer to Obama as an ape because he behaves like one, not because he is black. You are the one making assumptions I am calling him an ape because he is black and that makes you the racist for making the easy association of blacks being apes. Obama is an ape that can read a teleprompter and nothing more. He has no reasoning ability above most apes. He would be lucky to have enough reasoning to use a stick to get ants out of hole to eat them. I thought Bush Jr,, who happened to look like a chimp, was a worthless president, but Obama has set the standards for worst president ever. None of his policies are not well thought and are failures and he is a liar. Like most democrats he lives in a fantasy world and does not live in reality.
Several years ago, Richard Lindzen (MIT) coined the phrase "cheap virtue" to describe the motivation behind global warming hysteria. That is, some people need to back a perceived virtuous cause to justify their otherwise meaningless existence--regardless of it's validity. If that doesn't perfectly describe obama, hollywood, liberals, and the green nuts, I don't know what does!
neither are you Merc. you dont even play one on TV or the yahho message boards.....you could pass for a psych ward patient though...
JimJohn - don't you have a short position in ACI? I'm thinking that the SEC has some prohibitions against the spreading of false rumors in order to benefit a share position - but I may be wrong.
I really thought that ACI would give back a little of the nice gain that it made Thursday..I was wrong,and dayum happy to be so..For the volume to be good and the PPS to manage a small gain was very impressive to me..Apparently SOMEBODY was OK with staying long into the weekend...Guyz, that ain't all bad..Small steps on the long road back...Best regards, HOG
The democratic party will dissolve in the name of climate change. This cold thing is no fluke. It is here for a reason. BTW, Obama is not my boss. He works for me.
How dumb is it to collect carbon to cool the earth??? Think about it. Methane is a green house gas, Water Vapor is a green house agent, and nothing is said . Can't tax cow farts, can't tax water vapor. But lookie here,
we have some deep pockets in Energy /Oil&Gas. Let's tax Oil & Gas!! This is all a sham for redistribution of wealth and control.
Sentiment: Strong Buy
Made over $70k this month on ACI trading thanks to underground stock alerts (google them) I get my stock alerts from them. They put out a report on the S&P 500 a few months ago and were SPOT on. Good luck all longs!
WARREN BUFFETT, CLIMATE-CHANGE DENIER
The billionaire chairman of Berkshire Hathaway BRKB +0.24% is on some kind of roll. Yesterday we told you about his warning on public pension funds in his annual letter to shareholders. Now, he's puncturing deeply-held liberal myths about global warming. Mr. Buffett tells CNBC that extreme weather events are not becoming more common, and that climate change is not altering his company's calculations when insuring against catastrophic weather events. "The public has the impression that because there's been so much talk about climate that events of the last 10 years from an insured standpoint and climate have been unusual," he said. "The answer is they haven't."
Sentiment: Strong Buy
They will aid them in keeping their Senate seats in the coming elections....
The USA did not become the great nation it is by means of Communism. Remember that when you go to the polls. Communist and democratic agendas are in line with each other. Don't forget it. Keep America free.
Almost 29 years.... wow.... How old is the earth again? A whole 1.17 degrees? OMG.... we are all going to die!!!! Like I said before....5 years from now ...or maybe a little less.... you are going to feel like a total idiot. and all these countries spending ridiculous amounts of their countryman's tax money for a pointless task are going to look like a bunch of morons.