Hopefully the investment gurus won’t forget this too soon!!
Hopefully the “market fundamentalists” will learn something as well.
Texas May Triple Power Prices to Avert Summer Blackouts
The state has two choices: raise prices high enough that generators will determine it’s safe to build, or change to a model such as that used by PJM, which sets prices for needed power years in advance, said Oren, the Berkeley professor.
He expects Texas to hew to its model of paying for power only as its generated, which means the state will need to raise prices.
http://www.businessweek.com/news/2012-06-01/texas-may-triple-power-prices-to-avert-summer-blackouts
A Record Buyout Turns Sour for Investors
Struck at the peak of the buyout boom five years ago, the $45 billion acquisition of the Texas energy giant TXU — the biggest leveraged buyout in history — has been a painful investment for its private equity owners.
They did not need Warren E. Buffett to remind them how bad things were.
America’s most famous investor, in his annual shareholder letter on Saturday, highlighted his $2 billion wrong-way bet on the bonds of the company, which its new owners have renamed Energy Future Holdings. He called the investment “a big mistake” and said it was at risk of losing all of its value.
http://dealbook.nytimes.com/2012/02/28/a-record-buyout-turns-sour-for-investors/
Fears grow for $45bn utility as hedges near expiry
“Once the hedges roll off, it’s all over”, said one person very close to the original investors, “the single thing we got wrong was gas prices, no one saw shale gas coming”.
http://tinyurl.com/829ymeu