View Single Post
  #13 (permalink)  
Old 07-09-2009, 09:59 AM
billy ross billy ross is online now
Senior Member
 
Join Date: Dec 2008
Posts: 2,892
Default

Quote:
Originally Posted by eldondre View Post
don't be deliberately dense. Getting all the debt off its books is shuffling money around, specifically from its books to to some third party, is the PIDC.

that's not to mention from y pocket to theirs.


It bothers me too and at least he's finally trying to address it since the politicians don't seem inclined to.


it means there's hope, nothing is inevitable.

there's really nothing similar about those two situations at all. Also, I've heard PECO increases will be lower than much of the rest of the state because PECO rates are generally higher than, say, PPL. AFAIK, our rates are half that of New England, less than NY, and more expensive than sunbelt states. PECO is now benefitting from low cost power from paid off nuclear plants, PGW will still have outdated equipment, buy spot market power, and ceteris paribus, have an expensive cost structure.

A lot of that will depend on gasprices and what their capital needs are I would imagine.

as for natural gas, we need the price to increase a bit. Penn sits on one of the largest natural gas reserves in the world AFAIK but it's expensive to extract...so we need prices to remain elevated. If other pices increase, the relative price is more competitive.
That third party stuff is speculative, and it refers to the remaining $800 million. It may or may not happen. I don't believe it refers to the $400 million which has come due - it is my understanding that PGW plans to cash flow its way out of that, and that it has already gotten the emergency rate increase to pay part of those increased principal payments. It seems to have found the remainder in its present budget, partially through skimping on capital expenditures. It's a balancing act, and I am finally glad to say that we seem to have competent people in there. It was such a mess for so long that we're not going to come out of it overnight.

Last edited by billy ross; 07-09-2009 at 10:06 AM.
Reply With Quote