Ch6 Article 3 - Corporate News: Power Companies Wrestle...

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Page 1 of 2 2009 Factiva, Inc. All rights reserved. Corporate News: Power Companies Wrestle With Extended Slump By Rebecca Smith 520 words 1 August 2009 The Wall Street Journal J B5 English Utilities are struggling against weakening demand for electricity that is forcing them to trim spending and explore new rate structures. Lackluster results this earnings season are bolstering the notion that power use -- in some ways, a proxy for U.S. economic activity -- may not recover to prerecession levels until 2011 or later. Already, the slump looks like the worst since 1950. American Electric Power Co., a utility serving 11 states, said Friday that industrial demand dropped by 20% for the quarter, the sharpest decline the company has seen in decades. That contributed to an overall decline in retail energy sales volume of 9%. Wholesale energy sales fell nearly 35%. Despite the reduction in sales volume, rate increases since the second quarter of last year at eight of its 11
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This note was uploaded on 01/26/2011 for the course MKT 337h taught by Professor Staff during the Spring '08 term at University of Texas at Austin.

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Ch6 Article 3 - Corporate News: Power Companies Wrestle...

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