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EPA Chief Pruitt Resigns; Former Coal Lobbyist Takes Helm

July 7, 2018

Scott Pruitt, chosen by President Donald Trump to lead the Environmental Protection Agency despite repeated lawsuits against the agency when he served as Oklahoma’s attorney general, resigned as EPA director July 5. Pruitt had been under scrutiny throughout his EPA tenure for questionable ethical decisions involving his office.

Pruitt, who repeatedly said he had done nothing wrong during his time as director, in his resignation letter Thursday wrote: “It is extremely difficult for me to cease serving you in this role first because I count it a blessing to be serving you in any capacity, but also, because of the transformative work that is occurring. However, the unrelenting attacks on me personally, my family, are unprecedented and have taken a sizable toll on all of us.”

He continued: “My desire in service to you has always been to bless you as you make important decisions for the American people. I believe you are serving as President today because of God’s providence.…

GE CEO: Company ‘Finished’ with Restructuring

June 27, 2018

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General Electric (GE) saw its stock price surge more than 7% on June 26 after the company said it would dissolve its stake in oil services company Baker Hughes and spin off its healthcare unit over the next few years.

The announcement comes one day after GE said it would sell its Distributed Power business, which includes the company’s Jenbacher and Waukesha engines, to global private investment firm Advent International in a $ 3.25 billion deal.

CEO John Flannery on Tuesday, in an interview with the CNBC program “Squawk on the Street,” said, “I’m a believer” in his company’s turnaround prospects. “I’m very comfortable when we have seen issues along the way, we’ve serviced them, we’ve dealt with them and I think today is another example of that,” he said.

Flannery, who has divested several of the company’s assets since taking over from long-time CEO Jeffrey Immelt last summer, including the company’s electrification unit, said, “We are finished” when asked if more moves were in the offing.…

Restructuring on Horizon for Siemens and GE

June 25, 2018

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Siemens and General Electric, two rivals battling financial problems due to fewer orders for their flagship energy products and services, could each announce major restructuring moves in the coming weeks, according to media reports.

Reuters on June 21, citing a person familiar with the matter, said Siemens plans to merge or trim some of its industrial units, which could include its power operations. Reuters said it was told the Munich, Germany-based company would reduce its core industrial divisions from five to three, effective October 1—the start of the company’s next fiscal year. It reported that sources said details of the company’s “Vision 2020+” plan would be known in August.

Bloomberg earlier this month said the company was considering the sale of its gas turbines manufacturing unit.

Germany’s Manager Magazin also reported the changes on Thursday. The magazine said the new divisions would have higher margin targets. It reported that part of the plan is to merge the company’s “so-called Digital Factory unit with operations designed to automate process industries, and to combine overland high-voltage networks with the power plant business.”…

First AP1000 Nuclear Units Reach Key Milestones

June 23, 2018

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Two Westinghouse AP1000 nuclear power plants being constructed in China have successfully completed significant project milestones.

Sanmen Unit 1—the world’s first AP1000 reactor—achieved initial criticality on June 21. Initial criticality is a nuclear industry term meaning the reactor’s neutron population has remained steady from one generation to the next and the nuclear fission chain reaction is self-sustaining for the first time.

“Today we completed the final major milestone before commercial operation for Westinghouse’s AP1000 nuclear power plant technology,” Westinghouse President and CEO José Emeterio Gutiérrez said in a press release announcing the accomplishment. “We are one step closer to delivering the world’s first AP1000 plant to our customer and the world—with our customers, we will provide our customers in China with safe, reliable and clean energy from Sanmen 1.”

The next significant step is connecting the unit to the electric grid. Assuming work continues on schedule, Sanmen Unit 1 will be the first AP1000 nuclear power plant to commence operation.

Meanwhile, at the Haiyang facility, fuel loading began on Unit 1—another AP1000 reactor.…

Increasingly Debt-Laden, Regulated Utility Sector Outlook Veers from ‘Stable’ to ‘Negative’

June 21, 2018

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For the first time since it began conducting sector outlooks, Moody’s Investors Service has downgraded the regulated utility sector from stable to negative. The new outlook reflects a surge in financial risks in the sector as more individual companies in the regulated space funnel funds to debt.

Using an analysis of 42 of the largest U.S. utility and power holding companies and 102 utility operating companies with at least 10 years of financial data, Moody’s concluded in a June 18 report that the outlook clearly points to a “declining financial trend” in the sector. The trend is a function of “higher holding company debt levels incurred in the last few years” as a result of lower cash flows, and “a lower deferred tax contribution to cash flow going forward due to tax reform.”

The credit rating agency’s downgrade is mostly rooted in “degradation” of key financial credit ratios. These include the ratio of cash flow from operations to debt; funds from operations (FFO) to debt and retained cash flow to debt; as well as certain book leverage ratios.…

Memo: Siemens ‘Committed’ to Gas Turbines Unit

June 17, 2018

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Siemens still hasn’t commented on reports it could be looking to sell its gas turbine business. But the managing board member responsible for the company’s power and gas division reportedly issued a memo to staff in the wake of those reports, saying Siemens remains committed to its long-time flagship product.

Bloomberg, which on June 13 first reported the company could shed its gas turbines, today reported a memo was sent by managing board member Lisa Davis, citing what it called “a person familiar with the document.” The Bloomberg report quoted the memo as saying “There is no truth to the rumors” about a possible sale of the turbine unit. “Siemens is committed to the power generation business for the long term! And of course this is also true for our large gas turbines.”

Bloomberg said the memo, which it claims to have seen, contained instructions on how staff should respond to media inquiries about the future of Siemens’ turbine business.…