European Tribune

Display:
That presumably means the owners would be able to renegotiate the price after the contract ends - with another potential 20 years of future renegotiation.

But coming in with a contract under comparative energy prices, is a jolly good way of getting a lot of assets up fast, and paying off a part of the capital investment on all the assets. Then after 5 years you can rub your hands together and call any price you like.

These kind of deals look attractive to short-term thinking, (and 5 years is a long time in municipal budgeting), but I think they are giving away a lot in a panic.

Cheap mortgage anyone?

You can't be me, I'm taken

by Sven Triloqvist on Wed Jul 2nd, 2008 at 04:32:38 PM EST
Actually, it means Houston took the 2 cent premium for the present, and hope to have some decent negotiating position in the future.  Which they won't, but they'll still have a better deal than the going price five years from now.

Skennah Kowa
by Crazy Horse on Wed Jul 2nd, 2008 at 06:06:22 PM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Recommended Diaries
Recent Diaries
Debates
Campaigns
Occasional Series