Coal, Combined Cycle

New report reveals opportunities in U.S. independent power generation and distribution markets

SUNNYVALE, Calif., Aug. 15, 2001 — Deregulation is being introduced gradually in the United States. Of the 48 contiguous states, about 24 have introduced full or partial deregulation measures.

Currently, deregulation has introduced several uncertainties. Because of the recent developments in California, some states have begun questioning the overall benefits of deregulation and have decided to postpone action until the California situation stabilizes. Some industry experts believe that unless the supply of power slightly exceeds demand, the intended benefits of deregulation will not be realized.

The new report, “Opportunities in the Changing U.S. Independent Power Generation, Transmission and Distribution Industry,” addresses the critical issues and opportunities confronting investors, suppliers and distributors regarding all nine major power generation technologies.

It also explains how the power generation business in the United States, and most industrialized and some non-industrialized countries, is undergoing fundamental changes as influenced by the following market forces:

— Deregulation of the power industry in general.

— Loosening of the monopolistic hold of utilities in retail power distribution.

— Increased environmental activism and legislation that are acting against the use of nuclear, oil and coal as fuel sources.

— Continued use of coal as the most available and inexpensive fuel source.

— Increased use of natural gas and combined cycle power plants.

— Emergence of merchant power plants, IPPs (Independent Power Producers) and co-generation systems.

— Growth of Distributed Energy (DE) systems.

— Power plant construction contractors becoming partners in power plants they construct.

— Power being marketed as a commodity in future contracts on mercantile exchanges.

— Independent power plant operators finding it very difficult to enter retail power distribution markets in direct competition with local utilities.

— Some utilities finding it more profitable to sell power than produce it.

The 120-page report is available by contacting Rob Smith at 408-524-9767 or [email protected]

About the co-publishers

Founded in 1990, MRG, Inc. (www.mrgco.com) has headquarters in Sunnyvale, California. It publishes market analyses of new technologies; and provides market intelligence and strategy consulting for client companies. Fuji-Keizai USA is a subsidiary of Fuji-Keizai, Ltd., one of Japan’s largest and most respected publishers of business reports.

SOURCE: MRG, Inc.