ZIONS BANK WASATCH CONSUMER ATTITUDE INDEX
UB DailyIn May, on a seasonally adjusted basis, the Zions Bank Utah Consumer Attitude Index (CAI) fell to 70.7, a decrease of 1.1 points compared to April 2011.
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After surging to the highest levels since 2008, oil dropped 10 percent in May, biggest monthly decline in a year; pump prices slipped nearly 4 percent ... continue
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ISM's Index is at lowest in past year. Click to continue
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The consumer products industry will need more than supply chain processes to succeed in the coming year and beyond. They will also need the discipline to be flexible yet strategic. Click to continue
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With a year-to-date total of $1,203.57 million, 2011 is up 118.6% compared with 2010. Click to continue
CREATING JOBS THROUGH TRADE AND INNOVATION
World Trade Center UtahUtah's business community had the unique privilege of hosting Rebecca Blank, Acting Deputy Secretary of Commerce as keynote speaker at the recent Zions Bank 10th Annual Trade & Business Conference. With both the World Trade Center Utah and the Salt Lake Chamber as major supporters of President Obama's National Export Initiatives to double exports (and in so doing, create 2 million jobs) in the next five years, it was a perfect opportunity to interview Rebecca Blank, discuss Utah's secret to success in already doubling exports in the last five years, (and on track to meet the future agenda) and everyone's favorite buzzword, "innovation."
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ASSESSING THE U.S. BUSINESS, TRADE INDUSTRY
World Trade Center UtahBy Jessica Hernandez
The former president of Colombia and a top Obama administration official told Utah business leaders interested in expanding to new markets to consider the "emerging economies" across the globe.
About 800 leading business professionals gathered Thursday for Zion's Bank 10th annual Trade and Business Conference, where acting Commerce Department deputy secretary Rebecca Blank, former President of Colombia Alvaro Uribe and other speakers assessed the business and trade industry of the U.S.
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Government will lose about $14 billion in taxpayer funds from bailout of U.S. auto industry, a third of the loss officials had initially estimated ... continue
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ISM said manufacturing expanded at slowest pace in 20 months -- the latest sign that a sharp rise in energy prices is hampering economic growth ... continue
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It's impossible to foresee every contingency, but a consideration of such disruptions must be part of the foundational strategic planning process ... continue
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Best month for private-sector hiring in 5 years and a pickup in summer jobs helped lower unemployment rates in nation's largest cities in April ... continue
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Retailers reported muted May revenue growth as bad weather and worry over the rising cost of living held back shoppers' demand for merchandise ... continue
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Companies squeezed more work out of their staffs in first three months of the year, but the gain was much slower than in the previous three months ... continue
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The government doesn't follow the usual market drivers wherein a superior product is chosen on its merit. Wheels need to be greased ... continue
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Labor Department said fewer people applied for unemployment benefits, but applications remain stuck at a level that signals weak job growth ... continue
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Prices bounced back above $100 a barrel as weakening dollar outweighed an unexpected jump in U.S. crude supplies, suggesting demand is weakening ... continue
LITIGATION; ENVIRONMENTAL COMPLIANCE; ENERGY
Federal Court Orders EPA to Issue Power Plant Permit Exempted From GHG Controls; EAB Review Potentially
BypassedClimate Change News – James A. Holtkamp – Holland and Hart
On May 26, U.S. District Court Judge Richard Leon of the District of Columbia issued a ruling requiring EPA to issue a final air permit reviewable only in federal court for the 640-megawatt Avenal natural gas power plant in California by August 27. click here to read more
ENVIRONMENTAL COMPLIANCE; ENERGY
EPA Makes Confidentiality Determinations for Greenhouse Gas Reporting
Climate Change News – James A. Holtkamp – Holland and Hart
The EPA issued a final rule on May 26 addressing the scope of confidential business information protections for companies submitting information on their greenhouse gas ("GHG") emissions to the Environmental Protection Agency ("EPA") under the GHG Reporting Rule. 76 Fed. Reg. 30782 (May 26, 2011). click here to read more
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The batteries, used in laptops produced between July 2007 and May 2008, could overheat and melt down, possibly sparking a fire. Click to continue
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Strong May boosts Chrysler to No. 3 spot. Click to continue
PARTIES SEEK SUBSTANTIAL REDUCTIONS IN RECORD RMP RATE FILING
UAE NewsletterNumerous parties intervening in Rocky Mountain Power’s (RMP) rate filing made in January 2011, are seeking a substantial reduction in the record $232.4 million sought by the power company.
In testimony filed May 26, 2011, intervenors including the Division of Public Utilities (DPU), Office of Consumer Services, (OCA), Utah Association of Energy Users, Utah Industrial Energy Consumers (UIEC), Western Resource Advocates (WRA), and others, voiced concern over the key costs that RMP has identified as the drivers for the steep rate increase:
1. Capital improvement
2. Net power costs
3. Load growth
4. Increases in coal costs
5. Reduction in wholesale sales revenue
RMP is also seeking a 10.5% Return on Equity (ROE), and received approval by the PSC to use a future test year encompassing projected costs between July 1, 2011, through June 30, 2012.
Intervenors addressed several issues, the key areas including net power costs, prudence of capital investment and environmental compliance, hedging strategies, hydro costs, Renewable Energy Credits (RECs) and ROE.
UAE issues reflect adjustments to interjurisdictional allocation, Klamath Dam costs, RECs, environmental capital investment, wage and benefits, natural gas hedging, and others. DPU witness Brenda Salter sponsors $125 million in adjustments, with recommended reductions in ROE, based on a 10% return, net power costs, and other auditing adjustments. The OCS recommends a $40.2 million revenue increase including corrections for tax errors, adjustments for plant additions and retirements, Klamath Dam costs, RECs, payroll costs, and other employee costs.
UIEC filed testimony that recommends a $70 million revenue requirement adjustment, with major reductions in net power costs, as well as a recommendation for an alternative ratemaking concept for RMP as a transmission provider. UIEC witness Peseau recommends that the PSC alter the cost allocation for transmission that also serves wholesale customers, so that retail customers aren’t totally bearing the cost of the Gateway Energy Project.
US Magnesium witness Roger Swenson recommends a $60.8 million revenue adjustment based on sales of renewable energy for longer periods than currently done by RMP.
WRA witness Nancy Kelly believes that the cumulative effect of EPA’s regulations on air quality and water, as well as the economics of the coal market, will make PacifiCorp’s coal-fired generation increasingly expensive and will undermine the utility’s economic viability. Kelly suggests that early retirement of some of the units may be a better option than investing so heavily in pollution control.
The Sierra Club also addresses concerns about resource planning and contends that PacifiCorp did not sufficiently address impending environmental costs facing the company in the 2011 Integrated Resource Plan.
The need for additional staffing as skilled workers are retiring is addressed by the International Brotherhood of Electrical Workers. Witness Gary Cox states in his testimony that the lack of hiring and training staff by the utility has led to excessive contracting for work that could be done better and more economically by internal staff at PacifiCorp.
The utility, as well as intervening parties will file rebuttal testimony on June 30th. Revenue requirement hearings before the Utah PSC begin July 27th.
NATURAL GAS PRICES EXPECTED TO RISE IN 2012
UAE NewsletterAn expected decline in natural gas production in the United States will contribute to a tighter domestic market and an average Henry Hub price of about $4.65/MMBtu in 2012, the U.S. Energy Information Administration said May 10 in its monthly "Short-Term Energy Outlook."
The Henry Hub spot gas price aver-aged $4.25/MMBtu in April, 28 cents higher than the March average and 25 cents higher than forecast in last month's outlook.
Henry Hub should average $4.24/MMBtu in 2011, a decline of 15 cents from the 2010 average, the outlook says.
Looking at storage, "Cold temperatures and production freeze-offs in January and February contributed to relatively large draws on inventories early in the year" and the market ended April with total storage at about 1.8 trillion cubic feet, about 11%, or 230 Bcf, below last year's level in late April.
Though stocks could remain lower than last year, EIA expects inventories will remain robust overall given higher forecast production throughout the 2011 injection sea-son.
Working gas inventories will build strongly during the summer and approach re-cord-high levels in the second half of 2011, nearing 3.9 Tcf by the end of October, "because of high production levels and a mild summer relative to last year," the EIA said.
On the demand side, the agency expects total gas consumption to grow by 0.5% to 66.5 Bcf/d in 2011. Forecast industrial consumption rises 1.9% to 18.4 Bcf/d in 2011 and electric power consumption rises 0.4% to 20.3 Bcf/d.
In 2012, projected total consumption in-creases by 0.7% to 67.0 Bcf/d as growth continues in the industrial and electric power sectors at 1.4% and 2.6%, respectively. However, residential and commercial consumption each decline by 1.6% in 2012, stemming from a forecast 2.2% reduction in natural gas-weighted heating degree-days.
Marketed gas production, which has been growing steadily since 2005 primarily because of the boom in horizontal drilling in unconventional shale formations, will average 1.4 Bcf/d, or 2.3%, higher in 2011 compared with last year.
The EIA said production fell by 1.1 Bcf/d month-on-month in February, but this drop can largely be attributed to temporary factors including seasonal maintenance in the Gulf of Mexico and colder-than-normal weather in Texas, New Mexico, Oklahoma, and Wyoming, which caused freeze-offs, which forced temporary shut downs to Lower 48 onshore production. Freeze-offs occur when water vapor in the gas stream freezes, blocking the flow of gas.
EIA expects production will recover from February levels but begin modest month-to-month declines that could continue through the year be-cause of reductions in the number of active natural gas drilling rigs. The number of rigs drilling for gas has fallen from 973 in April 2010 to 882 as of April 29 as more rigs are being directed toward oil in-stead of gas largely because of the large price disparity between the two fuels on an energy-equivalent basis.
On April 21, the number of active oil-directed rigs exceeded the number of gas-directed rigs for the first time since April 28, 1995.
The EIA said the decline in gas drilling this year and a forecast increase in consumption next year will mean higher gas prices and a turnabout in drilling activity during 2012. The agency expects total marketed production to increase by 0.6 Bcf/d, or 0.9%, to 63.8 Bcf/d in 2012.
US imports of LNG are expected to average 0.9 Bcf/d in 2011, down 21% from 1.2 Bcf/d in 2010 as growing domestic gas production continues to reduce reliance on imports.
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Businesses cut back orders for heavy machinery, computers and autos, partly because the earthquake in Japan made parts harder to come by ... continue
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