AbitibiBowater, Inc. (fka ABWTQ)

[KFC44]

California Power Rates - Link to article below


In the past, I have referenced that I believe that the new inflation will not come from higher copper, gold, crude or agr. commodities, but from higher cotton (clothing), lumber (normalized "replacement cost" of building a house, food (pork-hogs, beef-cattle etc.) prices and higher electricity rates.

I believe that even though the price of electricity went up over the past 5 years, it did not go up enough to properly maintain the North American Grid.

Further, with all of the new computers and other electronic gadgets purchased by consumers over the past 5 years, plus the potential for hybrid cars, there is no way that electricity rates could have been as low as they were -- especially when crude was at $140 / barrel.

And judging from the way that Wall Street has also been setting up Calpine, Dynegy and other independent electricity producers (take not of the continued BS trade on Abitibi-Bowater -- and illegal naked shorting -- same as in the previous companies), the attached article is now very relevant.


http://www.latimes.com/news/local/la-me-dwp-rates16-2010mar16,0,7870063.story

Take Note: Cap & Trade -- where is the future value.

Take note: readers of newspapers may have gravitated to the internet over the past five years, but if they suddenly have to pay 5 times as much for "electricity" for on-line readership), maybe "hard-copy" newspapers will turn out to be the cheaper option in the medium and longer-term.

Take Note: Building out New Networks is going to require much more elctricity use -- AbibitiBowater is a also a "Electricity Producer".