S&P Global Market Intelligence presents the most read stories for the week ended Dec. 6.
Overpowered: PJM market rules drive an era of oversupply
Ohio, for many decades one of the centers of the U.S. coal industry, has been undergoing a transformation triggered by a shift in demand to other energy sources — primarily natural gas. Today, at least six natural gas plants are in some phase of planning or development in the state, and more than $25 billion is being spent to build new power plants — nearly all of which are natural gas — across the Appalachian Basin states of Ohio, Pennsylvania and West Virginia. The eastern half of Ohio also lies atop the Utica and Marcellus formations, two of the richest shale gas deposits on earth.
Overpowered: Why a US gas-building spree continues despite electricity glut
When the Inland Empire Energy Center was announced in 2005, it was touted as a breakthrough power plant that would fill a critical shortfall in California's electricity supply for decades to come. Located in Riverside, Calif., and based on a vaunted new gas turbine technology from General Electric Co., the 730-MW, $500 million power plant came online in 2009.
Overpowered: In Virginia, Dominion faces challenges to its reign
When Dominion Energy Virginia decided in 2012 to convert two units of its coal-fired Bremo Bluff power station to burn natural gas, it pledged that the conversion at the Fluvanna County plant would save customers $32 million compared to the cost of building new gas-fired generation and $155 million compared to continued operation on coal.
Overpowered: Hailing renewables, NextEra bet big on gas in Florida
At an investor conference in New York in 2015, NextEra Energy Inc.'s then-CFO, John Ketchum, delivered a striking assessment to Wall Street: Solar power had become so inexpensive that the company might be finished building natural gas plants in Florida, the state where it is headquartered and where it owns an electric utility.
Overpowered: Power plant sales in PJM: A buyer's market
A large number of new merchant combined-cycle plants have come online in the PJM Interconnection region over the last few years, pushing investors to reassess the value of their investments in these plants. That, in turn, has led observers to wonder if a sell-off of generation assets is underway.