Gray Expectations - energy deregulation scenarios - Industry Overview

Kiplinger's Personal Finance Magazine, June, 2001 by Jeffrey R. Kosnett

Of course, the weather could behave. "Look at what happened last year," says Eugene Gorzelnik, a spokesman for the North American Electric Reliability Council, which assesses supplies. "New York and New England were expected to be tight, and in May and dune it was a little dicey. Then it cooled off and there were no problems." Con Edison, the electric supplier to New York City, says it has a bigger power surplus now than it did last year, although the reliability council says the city's outlook depends on whether some new generating capacity is ready before the hot weather sets in. The Great Lakes states and the nation's rural electric cooperatives say they anticipate no supply problems.

If there is a surprise, it will be an unpleasant one. More and more electric power is generated using natural gas, which is very expensive and will stay that way. Coal and oil prices are also high.

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