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The price of electrical generation often is regulated by state DPUCs so these electrical generation profit margins are negotiated and set periodically. I believe the lower cost is made up through volume so it may not hurt these utilities as much as you think. Electrical generation from Coal plants are being converted to NG. Manufacturing plants are opting to use NG as a fuel source. Maybe soon we will have an Energy Plan from Washington that sets a course for the US economy based on these new efficiencies.
Early on in this process I'm betting on the companies that transport this fuel...the pipe companies and the generation companies. They provide a service of transporting gas at a set price and generation electricity at a set price which helps stabilize their profits.
I believe their will be a whole set of innovations that come about because of this cheap fuel source and the opportunities will impact companies that provide products and services to the transportation, housing, and agriculture sectors.
Comments
The price of electrical generation often is regulated by state DPUCs so these electrical generation profit margins are negotiated and set periodically. I believe the lower cost is made up through volume so it may not hurt these utilities as much as you think. Electrical generation from Coal plants are being converted to NG. Manufacturing plants are opting to use NG as a fuel source. Maybe soon we will have an Energy Plan from Washington that sets a course for the US economy based on these new efficiencies.
Early on in this process I'm betting on the companies that transport this fuel...the pipe companies and the generation companies. They provide a service of transporting gas at a set price and generation electricity at a set price which helps stabilize their profits.
I believe their will be a whole set of innovations that come about because of this cheap fuel source and the opportunities will impact companies that provide products and services to the transportation, housing, and agriculture sectors.
It soon will be fashionable to say I got gas!
http://allstarcharts.com/five-money-moves-with-commodities-trader-peter-l-brandt/