Leave capacity margins to market forces

Article Abstract:

The large excess in the electric power industry's generating capacity has raised serious questions about capacity margins and the timing of additional capacity. This underscores the need for a more thorough understanding of the market forces that affect the stability of the electricity market.

Production management, Electric utilities, Supply and demand, Electricity

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Fuel costs to dominate powerplant valuations

Article Abstract:

Coal-fueled and hydro plants will be more useful assets compared to gas- or oil-fired units when deregulation takes effect as the latter are more economical. The finding was based on a Competitive Market Management System model by Decision Focus Inc. of Mountain View, CA.

Coal-fired power plants, Coal fired power plants, Gas power plants

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Competitive 'truths' change powerplant economics

Article Abstract:

The shift towards a fee market for power generation necessitates the evolution of powerplant economics. Among the new marketplace realities are shorter payback periods, lower capital cost, shorter lead-times and enhanced plant operating flexibility.

Electric power plants, Power plants, Free enterprise

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