Off Peak

Deck: 
Where ex utility CEOs lurk and spill their guts.
Fortnightly Magazine - July 15 2003
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Where ex utility CEOs lurk and spill their guts.

Price Beyond Reach?

"My gut tells me either it's going to be too expensive for the 'average joe' (who will switch to expensive but available electric space heating), or it will be rationed by market forces (or the federal government), or 50 years down the road, [it will] just not be available at all at any price to conserve resources. I suppose folks could switch from other domestic uses (gas ranges, clothes dryers, and water heaters) to electric ones in the meantime, to keep what gas is available for space heating. whatcha think?

"I also see the federal ban on new construction residential/commercial space heating coming back, ala 1978-82 ... especially if new wells as a whole do not produce in sufficient quantities. Any comments/opinions?"

Is There Enough?

"What will happen to companies with no alternative fuel ability? Is there a possibility that a gas-only company could actually run out of gas in the middle of a cold winter?"

It Depends

"Analysts make statements like that because, in my opinion, they are confused and work on a simple business model that doesn't apply. The theory, let alone the application, of economics to utility rate regulation is NOT taught in business schools-not even Harvard or U of Chicago!! Also, first, they need to qualify any such remark by defining a gas company: is it regulated or do most of the earnings come from regulated activities?

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