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Re: None

Tuesday, 04/12/2005 11:56:46 AM

Tuesday, April 12, 2005 11:56:46 AM

Post# of 53980
It seems to me ...

Having worked with Electrical Utilities for many years, and it would probably apply for ANY established business, Utilities are very conservative. Show an proven operating history and maybe they will consider a change, as long as it doesn't affect the current revenue stream. The monkey wrench in the works is the regulators. Local, State, and Federal Regulators are looked at as a necessary evil. Utilities, and probably most all other established businesses, were unwilling to regulate themselves and thus opened the door for "help". It is looked upon about the same way as payola to Mexican officials is just part of the cost of doing business.

Electrical utilities rule of thumb is a profit of $1000/Megawatt-hour to the grid. Any change has to be weighed against how much down time would be required to implement the change.

Basic philosophy: If it works, and has worked for 40 years and it is making you that much money each day you are on the line, why would anyone want to take a chance on an unproven modification?

So this may be why sales are so slow. I expect what needs to happen is for AgES to go deep in debt. Buy land in Arkansas or some other place deep in Chicken country. Build an Electrical plant that operates on Chicken CHit/ feathers/ other waste. Cut deal with the chicken producers for the raw material. and operate the unit for several years.

If all that can be generated and stay within the local raw material supply is 10 Megawatts, that's $10,000/day, or 3.5 million/year.

This would have the effect of answering several questions.

1) Does it work?
2) Does it work and make a profit?
3) How much down time is there really?
4) What regulatory issues would be levied on such a plant?

It would also have the chilling effect of actually bringing money into the coffers.

They may even find it is much more profitable to build/operate than it is to just sell. (as of the reading the tea leaves today, selling doesn't seem to be working all that well)

Just meandering thoughts while wandering the waste land of no PRs.


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