The Nuclear Regulatory Commission has issued a final policy statement on its intended approach to nuclear plant licensees as the electric industry moves toward greater competition.
by ease of execution, a utility might consider a competitive bid for or negotiated sale of 1) its entire power purchase portfolio, followed by 2) its generating plant operations and maintenance function, and ending with 3) the outright sale of generating plant. The first to let go will reap the great- est value; the last the least. And those who don't may see their stock languish over the next few years.
In fact, future valuation is rarely this simple. Unforeseen factors will alter this predictive model. Suffice to say, however, that a significant portion of the industry is leaning toward generation as a stock price panacea at a time when true value may be produced by exiting generation. t
David P. Wagener is director of the Global Power Group at Salomon Brothers Inc., New York, NY.
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