Energy Jobs at EnergyNorthwest.com

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

June 21, 2018

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

| No Comments

| Industry News

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.…

TEPCO Exec: Daini Plant Will Be Decommissioned

June 15, 2018

| No Comments

| Industry News

A Tokyo Electric Power Co. (TEPCO) executive on June 14 said the utility is prepared to decommission the four idle units at its Fukushima Daini nuclear plant in Japan. The comments come as TEPCO continues to struggle with large compensation payments and cleanup costs associated with the March 2011 accident at its Fukushima Daiichi nuclear plant.

TEPCO President Tomoaki Kobayakawa’s remarks today are the first public statements from the company regarding the Daini plant, known as Fukushima No. 2, which escaped damage in 2011 but which is among dozens of Japanese nuclear plants that have remained offline for more than seven years in the wake of the Daiichi disaster. Kobayakawa at a news conference in Fukushima said local opposition to restarting the Daini units is partly behind his company’s decision to permanently close the plant.

The Daini plant is about 7 miles south of Daiichi. Some of its reactors lost cooling functions during the 2011 incident but none of the four units experienced a critical situation.…

GE Will Cut Jobs, End Manufacturing at Virginia Plant

June 13, 2018

| No Comments

| Industry News

General Electric’s (GE’s) power unit has said it will end manufacturing operations at its plant in Salem, Virginia, next year, with more than 260 workers losing their jobs, according to union officials. Officials noted that 42% of the affected workers are eligible for retirement.

The plan announced June 8 said the Salem plant, which opened in 1955, would continue as an engineering center staffed by some 200 employees. GE is among the largest employers in the Salem region, and the plant at one time had about 3,500 workers.

The company said the Salem manufacturing work would move to other GE locations or be handled by supplier partners. GE has struggled along with other turbine manufacturers over the past year as global demand for the units has fallen. CEO John Flannery in May told a Florida electrical products conference that the company is trying to stem the tide of business losses, but said he is “being deliberate” with moves to reorganize GE even as the company’s stock price has been hammered in the past year.…

Chicago Company Preparing Offer for Navajo Generating Station

June 11, 2018

| No Comments

| Industry News

A suburban Chicago-based energy company executive on June 7 told Arizona officials his group is putting together a proposal to purchase the Navajo Generating Station (NGS), the largest coal-fired power plant in the western U.S. The plant’s current owners have said they will close the 2,250-MW facility by year-end 2019 unless a buyer is found.

Workers, their family members, union representatives, and tribal leaders had rallied Wednesday in Phoenix, asking state officials to slow the process of closing the plant, which employs hundreds of Native Americans along with the nearby Kayenta Mine that supplies coal for the plant. Joe Greco, senior vice president of Middle River Power in Chicago, told the Central Arizona Water Conservation District board on Thursday that his company could operate the plant efficiently and economically.

The water board was meeting Thursday to consider bids for the future power supply to pump water for the Central Arizona Project (CAP), which supplies some of the state through an aqueduct system from the Colorado River.…

Puerto Rico Power Restoration Effort a Focus of EEI Convention

June 7, 2018

| No Comments

| Industry News

The Edison Electric Institute (EEI), an industry association that represents all U.S. investor-owned electric companies, made a point during its annual convention of recognizing the mutual assistance workers who labored tirelessly to restore power to Puerto Rico following Hurricane Maria.

Nearly 200 personnel, who had worked on the ground in Puerto Rico, gathered on stage during the opening session of the EEI event in San Diego, California, on June 5. Even though the actual number of workers involved in the effort was far greater—Tom Kuhn, EEI president, said more than 3,000 lineworkers, support personnel, and company representatives were part of the historic mutual assistance response and restoration effort—a gasp could be heard from the crowd when the group of 200 stood to make their way to the stage.

EEI Chairman and PNM Resources Chairman, President, and CEO Pat Vincent-Collawn said, “The expertise, the creativity, and the leadership that was brought to bear, along with the sacrifices of so many of you who answered the call for help, were extraordinary.…