Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Magazine

Table: Payback Time


Here's how FERC's new price-cap regulations could hit the industry:

LONG-TERM PLAYERS

Independent power generators such as Calpine (CPN), Dynegy (DYN), and AES (AES) now have most of their capacity locked up in long-term contracts, so the new regs won't do them any damage.

SHORT-TERM PLAYERS

Other producers such as Reliant haven't nailed down as many long-term deals. They trade most of their capacity on the price-capped spot market, so earnings could be hit.

TRADERS

With trading likely to slow sharply in the Western market, power marketers and traders such as Enron (ENE) and Aquila could see trading volumes and profits decline in the region.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus