Can someone explain to me why all of these RC facilities have not been leased if they produce such obvious monetary benefits. You would think that utilities would be jumping at the bit to get one of these RC facilities. Why is management dragging their feet? This is unreal.
The other reason is that the sophisticated tax buyer base is much lower than it was in 2007 for instance. There's a reason that Goldman told 50% of the JV and the first four plants, they're smart AND have the largest institutional investor base looking for structured tax credits. The structured tax credit market is much weaker than it was 5 years ago.
One of the difficulties is that the energy market is highly regulated. As a result, approvals are required from a lengthy number of local, regional, state, and federal agencies every time something new is introduced…plus PLRs from the IRS.
I am not giving management a pass on this (they should have been more realistic with the forecasts...remember when all units were supposed to be leased/sold by the end of 2013?), but I don't see the problem as management dragging its feet.
nick, mgmt os not dragging its feet. Things move slowly in the utility biz. I suspect that the utilities aren't in any big rush because the effective date of MATS is April 2015. The investors are naturally cautious because we are talking big bucks and assumption of risk. The new trend of CCS holding 50% for awhile is a winner and that the logjam will be moving this year.