The Massive Storm Facing Californian Utilities

[Flaxbee]

http://beta.fool.com/mrcanadian1/2013/04/19/even-utilities-are-warning-investors-about-solar/31975/?source=eogyholnk0000001

(Cross-posted in Energy & Environment)

Recently, the Edison Electric Institute published a report about the far-reaching impact of distributed solar generation. Distributed solar allows individuals to produce their own electricity, and net metering programs let individuals sell that electricity to utilities. California's utilities will face increased competition from millions of producers sick of high prices, and eventually the utilities' bottom lines will feel the impact.

Which Utilities Will be the First to Suffer?

Edison International (NYSE: EIX) will feel the pain with its Southern California Edison subsidiary. It serves nearly 14 million customers in one of America's most expensive states. A large portion of the firm's capital expenditure (capex) is directed toward distribution and transmission projects. In the 2013 to 2014 period, 88% of capex will be used for transmission and distribution projects. In the long-run this is risky, as homeowners selling electricity to utilities will greatly benefit from a stronger grid, but Edison International will have more producers to compete with.

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Are There Utilities in a Better Position?

Wisconsin Energy (NYSE: WEC) is in a better position than its Californian peers. Wisconsin isn't as sunny as California, but its centrally produced electricity is cheaper than California's. The state is close to cheap supplies of coal in Wyoming, natural gas pipelines and strong wind sources. Also, the firm's natural gas business provides some diversification from the electricity business.
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[jeff47]

1. Boy, I sure feel no pity for them.

Who could have predicted that colluding with Enron to fuck over your customers would lead to your customers seeking alternatives?

[SoCalDem]

3. Progress "kills" businesses all the time..

Buggy-whip /wagon-wheel makers probably loathed the auto industry

If we were younger, we would definitely try to get off the grid (too expensive upfront at our ages)

It's the 21st Century, EVERY roof in the US should be "solarized"..
Carparks/garages/parking lots should have solar built into them

Combined with wind all throughout the mid-west/western states, combined with solar...we should be getting power nearly free by now..

Instead, we are still using the dangerous (to the environment & us) fossil fuels, so that the owners/sellers/transporters of it are wade wealthy...at our expense

[Logical]

2. Does someone have a link to a site that really discuss the cost/savings for home Solar? n-t

[Control-Z]

4. Boo hoo. Poor So Cal Edison.

They've been gouging customers for so many years now, however will they get by? Seriously. SCE charges something like 4 times that of Los Angeles Department of Water and Power (LADWP).

[msongs]

5. reduce edison's role to night time supplier, crediting rooftop solar for its daytime input nt

[UnrepentantLiberal]

6. Hey you kids!

Get off my power grid!