Archive for September, 2007

NRG Applies to Build More Nukes in Texas

Tuesday, September 25th, 2007

reactors.jpgPer the Wall Street Journal, NRG, Inc. is planning to submit an application to the Nuclear Regulatory Commission to build 2 new reactors at the South Texas nuclear station.  The problem: NRG has never built a nuclear plant before.  The move comes as many energy companies scramble to qualify for federal incentives outlined in the Energy Policy Act of 2005.

While many agree nuclear power is much cleaner than more traditional energy sources, the risks of operating these plants can be substantial.  Domestic terrorism immediately comes to mind - but an attack on a nuclear facility is very unlikely.  However, as we saw at Chernobyl, accidents pose a huge risk and can be extremely devastating - rendering entire areas uninhabitable.  When you also consider the fact that the US doesn’t even have a repository today for disposing of radioactive waste from existing reactors, the nuclear option seems less attractive.  In my opinion, we need to think long and hard before we jump in head first on this one.

Why I Like Pipeline MLPs

Sunday, September 16th, 2007

mlp_epd.jpgToday, natural gas supplies about a quarter of energy in the US. However, forecasts by the US Energy Information Administration are calling for natural gas consumption to increase by over 40% by 2025! This is fueled primarily by the increased use of natural gas for electricity generation instead of coal. However, gas supply in the US is facing uncertainty as existing conventional wells continue to mature and dry up. This presents a problem for the US, as it begins assessing the possibility of increasing energy independence and using cleaner burning fuels.

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Kinder Morgan to Present at Lehman Conference

Thursday, September 6th, 2007

kmp.jpgMLP bellwether Kinder Morgan presents at the 2007 CEO Energy Conference in New York today. You can download the KMP presentation here. Of note is the diagram of capital structure (slide 4) which helps clarify how a portion of LP units are accumulated by the General Partner (GP) as incentive.

Related Links:

Kinder Morgan Investor Information

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