Weak Power Demand Dims Outlook

Business News & Financial News (Nov 30 2009) Power and Cooling

1. Electricity sales remained weak in the third quarter, prompting speculation that the sluggishness could persist even after the U.S. economy rebounds. Some utilities don't expect power sales to recover to pre-recession levels until 2012 -- if at all -- because so many factories have closed. Getting a read on future demand is crucial for utilities because they require long lead times to build power plants and make other upgrades. Declining sales put pressure on utilities to raise prices, cut costs or make other adjustments to bolster profits. Workers last month in Charlotte, N.C., home of Duke Energy. The sector began to feel the recession, which started in late 2007, later than many others. Sales held up well in the first half of 2008 but then declined and have continued falling this year, though some regions are reporting an uptick. The federal Energy Information Administration expects overall electricity sales to ... (Read Full Article)

   Bookmark or Share this article

Login to comment.