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Reliable people means customer service you can count on. That’s Progress Energy. ©2005 Progress Energy Carolinas, Inc. and Progress Energy Florida, Inc. 6 ENERGYBIZ MAGAZINE July/August 2005 We’re dedicated to making your power as reliable as possible. RELIABLE POWER. AND PEOPLE DEDICATED TO KEEPING IT THAT WAY. Reliability means improving how we deliver your power. Quickly restoring power after storms. Striving to make our customer service the best it can be. And evaluating and preparing for the energy needs of future generations. The relentless pursuit of excellence. It’s what we’re all about. progress-energy.com
Photo By: C Laura Maxwell Shultz Our Take VISIT US AT WWW.ENERGYBIZMAG.COM — FOR ARTICLES, TO WRITE A LETTER TO THE EDITOR, AND BACK ISSUES A Defining Moment THERE IS GROWING sentiment that the power industry is at a major turning point. Change is upon us, and it is accelerating. Washington insiders expect the first important new piece of national energy legislation in more than a dozen years to clear Congress and be signed into law by the president before the summer is out. Rep. Joe Barton, chairman of the House Energy and Commerce Committee, recently told industry leaders, “This is a bill long overdue.” In large part, that is because we soon may face a potential power shortage of immense proportion. Investment will be required in generation and transmission. Speaking several weeks ago the Edison Electric Institute’s annual convention in Las Vegas, Barton said that if the national economy continues at its current growth rate of 3 percent a year, we will need to build one new 300 megawatt power plant a week to satisfy energy demand. Similar estimates surfaced early in President Bush’s first term, and they were sketched out in the national energy plan put together by Vice President Cheney after meetings with industry leaders. Now, however, the numbers seem to have fresh urgency. Gerald Anderson, president of DTE Energy, told industry leaders at the EEI convention that his company, like many across the industry, faces some big decisions on investments — and fast. “These decisions are going to come in less years than you can count on one hand,” he said. These decisions also will be made when the nuclear option is getting a fresh look. Even some environmentalists concerned about global warming are newly sympathetic to nuclear power. “The ground is beginning to shift on this issue,” Anderson said. Meanwhile, the nation’s top regulator of nuclear plant safety is readying his agency for a possible surge in new construction. Nils Diaz, the chairman of the U.S. Nuclear Regulatory Commission, tells EnergyBiz in an interview published in this issue on page 20, that 100 new nuclear power plants will be needed in the next two decades if nuclear power is to continue to provide one-fifth of the nation’s electricity. Renewable power is growing in appeal, and wind turbines are marching across the landscape. Mergers continue, as utilities ready themselves for a new emerging business reality. All this adds up to a flexion point for the industry. In coming months, we will take a closer look at the new energy legislation, should it become law as many now expect. We will look at the implications of the many provisions of the new law – and focus on the opportunities and hurdles they present to the energy industry. But for now, it is time to take a deep breath and appreciate the grandeur of this sunrise moment. A century-old power industry is about to head off in new directions. New technologies will be embraced. New business visions will coalesce and crown new marketplace victors. Who knows, one of two companies may emerge as the Microsoft of the power sector. Appreciating the defining moment before us does not mean we can sit back as idle spectators. Some leaders at the EEI gathering warned that the industry shows a worrisome tendency to talk just to itself in a language only it understands. As Barton put it, energy represents 20 to 25 percent of our $10 trillion economy. What should the power industry of tomorrow look like? “Our industry has a big stake in shaping this discussion,” Anderson said. “These decisions are big ones, with 50-year implications.” www.energycentral.com ENERGYBIZ MAGAZINE 7
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