Stock Call Quotes Clean Energy Bill as Reason for Recent EnergyUtility Takeovers

According to the report the planned clean energy move of President Barrack Obama will permanently modify the scenery of the Electric Utility segment. The bill when comes into effect will make it binding on the electric utility companies to use certain percentage of clean renewable energy.

Though the exact percentage is not currently available it is anticipated that the bill will make it mandatory for the utility companies to produce 15% of their currently available energy from clean energy sources by the year 2021. Still there is a debate on the impact of the bill over Midwest and Southern states that have little chances of wind energy power production and the debate continues whether the power produced utilizing nuclear energy will be included for the purpose. The bill is introduced when the coal based energy production is giving way for natural gas power production. The gas prices are expected to remain static with a steady supply of raw material and the power production utilizing gas is expected to reach a whopping 82% by the year 2013.

According to the report the economic meltdown has reduced the power usage levels in industrial, commercial and residential sectors, which in turn has forced the power companies to reduce their costs. The melt down has also paved the way for the utility companies within the power production sector to take over other companies at bottom line prices. The report indicates the recent move made by NRG Energy Inc in acquiring four power plants off Dynegy, and its other move to acquire Green Mountain Energy as an indication of more such takeovers

Source: http://www.stockcall.com/