Energy Insight News for Wednesday, November 28, 2001
The race is on for new coal-fired generation

The race is on! Power plant developers have responded aggressively to the
power crisis in the West and the potential for power shortages in the
Midwest and Northeast, according to a report, New Coal-Fired Generation: The
Race Is On, by Boulder, Colo.-based RDI Consulting.

Using data compiled by RDI, a data division of Platts, the report estimates
the U.S. will require 296,000 MW of capacity additions by 2015 to meet
growing demand and to replace older units likely to retire. This compares
with roughly 780,000 MW of installed capacity in the U.S. today. 

RDI also projects that almost 60% of the required capacity will be built by
the end of 2006 and, despite extreme volatility in natural gas prices, the
majority of this new capacity will be gas-fired-equaling nearly 170,000 MW.
Because of that fact, for developers looking to build coal-fired plants, the
race has turned into a marathon. 

The advantage of proposed coal-fired generation is the potential for low
dispatch costs. Hypothetical plants modeled by RDI in all areas of the
country show new coal-fired generation can dispatch well ahead of gas-fired
plants and somewhat ahead of most existing coal-fired plants. 

Disadvantages of new coal-fired generation are higher initial capital costs
and greater risk, which means that new coal-fired plants are susceptible to
depressed market prices that could result from overbuilding new capacity.
Developers will have two choices in the near term if coal plants are to
succeed: wait out the surge of capacity development and be prepared to enter
the market later in the decade when the excess capacity is absorbed; or
secure long term power sales agreements and capacity contracts that will
provide enough revenue to cover the high development costs of a new coal
plant. Read the entire story at http://www.energyinsight.com. 
Also, catch the latest news headlines on Energy Insight Executive, updated
twice daily.
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Market Brief    Tuesday, November 27            	
Stocks  Close   Change  % Change	
DJIA    9,872.60        (110.2) -1.10%	
DJ 15 Util.     288.43  1.2     0.42%	
NASDAQ  1,935.97        (5.26)  -0.27%	
S&P 500 1,149.50        (7.9)   -0.68%	
                        	
Market Vols     Close   Change  % Change	
AMEX (000)      173,339 36,795.0        26.95%	
NASDAQ (000)    2,134,187       411,096.0       23.86%	
NYSE (000)      1,301,649       213,273.0       19.60%	
                        	
Commodities     Close   Change  % Change	
Crude Oil (Jan) 19.52   0.73    3.89%	
Heating Oil (Dec)       0.5402  0.016   3.09%	
Nat. Gas (Henry)        2.61    (0.107) -3.94%	
Propane (Dec)   29.75   0.50    1.71%	
Palo Verde (Dec)        27.25   2.00    7.92%	
COB (Dec)       31.00   0.50    1.64%	
PJM (Dec)       26.00   (0.70)  -2.62%	
                        	
Dollar US $     Close   Change  % Change	
Australia $     1.913   (0.015) -0.78%	
Canada $        1.60    (0.005) -0.31%	
Germany Dmark   2.22    (0.004) -0.18%	
Euro    0.8833  0.003   0.36%	
Japan ?en     124.0   (0.100) -0.08%	
Mexico NP       9.26    0.080   0.87%	
UK Pound        0.7071  (0.0007)        -0.10%	
                        	
Foreign Indices Close   Change  % Change	
Arg MerVal      218.61  (5.26)  -2.35%	
Austr All Ord.  3,291.40        6.70    0.20%	
Braz Bovespa    13602.88        (156.65)        -1.14%	
Can TSE 300     7462.60 (3.80)  -0.05%	
Germany DAX     5059.57 (54.55) -1.07%	
HK HangSeng     11261.54        (130.42)        -1.14%	
Japan Nikkei 225        10948.89        (115.41)        -1.04%	
Mexico IPC      5860.44 102.92  1.79%	
UK FTSE 100     5,265.96        (36.54) -0.69%	
                        	
Source:  Yahoo! & TradingDay.com                        	
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Executive News
OPEC's Khelil requests meeting with Russia's Putin
OPEC President Chakib Khelil said Tuesday he had requested a meeting with
Russian President Vladimir Putin. "We have asked as the OPEC presidency for
a meeting with the Russian President, Mr Putin, we have not yet had a
response," Khelil told reporters in Algiers. OPEC is currently lobbying
Russia to make a more significant contribution to a planned OPEC/non-OPEC
round of output cuts than the 50,000 barrels per day pledged by Moscow late
last week. OPEC agreed at its Nov. 14 meeting to reduce crude output by 1.5
million barrels per day, but only if non-OPEC producers contribute a further
500,000 barrels per day reduction. Mexico has said it is willing to cut by
100,000 barrels per day, while Norway said last week it would cut by
100,000-200,000 barrels per day, as long as other producers honor their cut
pledges.

Nordic to build power plant, ethanol facility in Ohio
Nordic Energy plans to develop the first new coal-fired baseload project in
Ohio in more than a decade, an 850-MW merchant plant in the northeast part
of the state, the company said Tuesday. The coal plant, which would utilize
integrated gasification combined cycle technology, would be a cogeneration
facility that also would produce steam to run an ethanol production plant
that affiliated Nordic Biofuels intends to build nearby. Nordic Energy will
initiate an anticipated 18-month permitting process for the coal plant early
next year. Commercial operation is expected in June 2006. The coal plant is
expected to cost about $1 billion, and the ethanol facility about $150
million. "We decided this is the time to build our own plant and move
forward," said Joni Fixel, Nordic Energy director of power supply.

To subscribe to our Executive News Service, which is updated twice daily,
log on to http://www.energyinsight.com, or contact Platt's Direct Response
Team at 1-800-424-2908 (if outside the United States call 1-720-548-5700).
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