MMC Energy Inc.
MMC Energy Inc.: Record power demand points to supply need
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The issuer is solely responsible for the content of this announcement.
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MMC Energy Inc. is providing following release to show which potential MMC
Energy Inc. has and that timing could not be better.
SAN FRANCISCO (Reuters) – The nationwide heat wave last week and new peak
demand records for air conditioning power mean the U.S. grid should be
adding more generating plants and beefing up reserve supplies to handle
emergencies, analysts say.
‘The price signal from the markets is there is an incentive to add more
plants to handle the generating peaks. We need to have some extra reserve
plants,’ said Peter Hartley, professor of economics at Rice University in
Houston.
Power companies are in position to gain from a push for more generation,
analysts said. Power markets must maintain reserve supplies of electricity
beyond forecast peaks in order to prevent blackouts like the ones in
California in 2000-2001 when the state did not have the power to keep up
with demand.
Electricity grids in California, Texas, the Midwest, the Mid-Atlantic, New
York and New England set all-time record peaks during the week as consumers
cranked up their air conditioners.
California grid managers appealed to consumers to conserve power and
directed energy companies to cancel maintenance work at their plants and on
power lines to keep megawatts moving to customers.
With temperatures hitting 113 degrees in Palm Springs, 103 in Sacramento
and 83 in usually cool San Francisco, the state grid set a new demand
record on Friday, its second for the week, and was expected to be even
busier on Monday.
Soaring temperatures were behind the new peaks, but ‘the results are still
noteworthy in that last year’s peaks benefited from a hot summer, implying
that the increase is more reflective of economic growth,’ Merrill Lynch
analyst Elizabeth Parrella said in a research report.
‘In most regions, the new peaks exceeded the projected 2006 peaks by a
noticeable amount,’ Parrella said.
The Pennsylvania-New Jersey-Maryland power region, or PJM, showed the
biggest jump, with electricity demand at the start of the week topping
forecasts by 4.7 percent.
The increase was the equivalent of 8 to 10 new coal plants and meant that
reserve margins would have narrowed to 17.7 percent from 23.2 percent
projected for this summer, Parrella said.
TIGHTER MARKET
‘Even normalizing for weather, these results would imply that PJM is
becoming a tighter power market earlier then expected,’ she said.
‘This is the time when you put everything you have onto the grid, not only
the most efficient natural gas units but peakers, everything,’ Danielle
Seitz, analyst at Dahlman Rose & Co., said, referring to smaller generating
units that supply power only during hours of high demand.
Merchant power producers should be getting a strong summer boost from its
California plants, Seitz said.
About MMC Energy, Inc.:
Headquartered in New York City, MMC Energy, Inc. is a North American energy
acquisition company, which primarily acquires and operates deep value power
generation and associated energy infrastructure assets. The Company’s
mission is to create long-term value from deep discount acquisitions
through a dual focus on structuring disciplined acquisitions and hands on
post-acquisition asset management. The Company currently owns power
generation assets in California and is pursuing an aggressive portfolio
acquisition and growth strategy targeting small to medium sized power
generation facilities and energy infrastructure assets primarily in
California, Texas, Mid-Atlantic, and the Northeastern U.S.
Additional information concerning MMC Energy, Inc. is available at
http://www.mmcenergy.com or per E-Mail to mmc@ir-services.de (german)
Contact Germany
Value Relations GmbH
Tel. 069 959246-13
Sternstr. 15
D-60318 Frankfurt
(c)DGAP 25.07.2006
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Language: English
Issuer: MMC Energy Inc.
26 Broadway, Suite 907
NY 10004 New York Vereinigte Staaten von Amerika
Phone: +1 212 977 0900
Fax: +1 917 591 6906
E-mail: miller@mmcenergy.com
WWW: www.mmcenergy.com
ISIN: US55312Q1094
WKN: A0J2L0
Indices:
Listed: Freiverkehr in Berlin-Bremen; Open Market in Frankfurt
End of News DGAP News-Service
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