Energy Biz - July/August 2008 - (Page 82) » MEtrIcS Capacity Additions Continue to Slide Power Industry +32,626 The aMouNT oF geNeRaTIoN brought online – new plants and expansions – continued to slide in 2007 and amounted to 12,349 megawatts for the entire power industry, according to data in the Edison Electric Institute 2007 Financial Review. Investor-owned utilities accounted for 5,204 megawatts of that figure. Power industry capacity additions have steadily declined since hitting the 54,386 megawatt figure in 2003. For the first time, wind was the leading type of generation among new plants brought online. New Capacity [in megawatts] nE Pl W an T s +21,759 Pl EXan PaT n +18,996 si o n s +7,885 +11,131 +9,396 +6,901 +6,274 +7,063 +5,286 2003 54,386 2004 26,871 2005 20,526 2006 13,175 2007 12,349 sourcE: EEi 2007 financial rEViEW Increase in Rate Increases by roberT L. SCHaiN aFTeR ReaChINg a LoW eaRLY this decade, the number of equity return determinations for energy companies has increased recently. The total number of cases in 2007 was the largest since 1993. The trend is likely to continue because of increased costs, including environmental compliance expenditures, the need for generation and delivery infrastructure upgrades and expansion at many companies. The expiration of rate freezes also will result in increased case activity. However, relatively low interest rates, competitive pressures, technological improvements, the use of multi-year settlements that do not specify return parameters, and a reduced number of companies due to mergers, may prevent the number of rate cases from significantly increasing further. Robert L. Schain is president of Regulatory Research Associates, an affiliate of SNL Energy. ELECTRIC GAS TOTAL Total ($mil) Jan-May 2008 Cases Total ($mil) Cases Total ($mil) Cases 2007 2006 2005 2004 2003 $886.3 $1,401.9 $1,465.0 $1,373.7 $1,091.5 $313.8 12 46 42 36 30 12 $149.9 $813.4 $444.0 $458.4 $303.5 $260.1 9 48 25 34 31 30 $1,036.2 $2,215.3 $1,909.0 $1,832.1 $1,395.0 $573.9 21 94 67 70 61 42 sourcE:rEgulaTory rEsEarch associaTEs 82 E n E rgyB i z July/August 2008
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