Speaker 1: Global business news twenty four hours a day's Bloomberg dot Com,
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Speaker 1: is a Bloomberg Business Flash from Bloomberg World Headquarters. I'm
Speaker 1: Katherine Caldery. We take the markets every fifteen minutes throughout
Speaker 1: the trading day. Let's go over to the First Word
Speaker 1: Breaking news desk for today's afternoon call with Bloomberg's Bill Maloney. Bill,
Speaker 1: Good afternoon, Katherine. Stocks are under pressure today, with the
Speaker 1: Dow currently down a hundred and eight points, says Bees
Speaker 1: drop sixteen and NAZAC is lower by forty six. The
Speaker 1: small cap six hundred drops nine points, and the US
Speaker 1: ten yield at one point five percent. Nine out of
Speaker 1: tennis be sectors are lower, led by losses in the consumer, discretionary,
Speaker 1: financials and the industrials small gains for energy down, Transports
Speaker 1: drop two percent, NASA by takes Outperform up thirteen points,
Speaker 1: Utilities fall four and the vix is up by ten percent.
Speaker 1: Down Leaders to the downside included Fiser, Goldman, Sacks, and
Speaker 1: Apple Small for Procner, gamble X on mobile and Travelers.
Speaker 1: Malan Cry jumped as much as sixteen percent after its earnings,
Speaker 1: while Biogen surged surged as much as ten and a
Speaker 1: half percent incher day after the water Jeneral reported that
Speaker 1: Biogen has drawn takeover interest from Ourgon and mark It's
Speaker 1: another busy night for earnings and some of the names
Speaker 1: reporting acted the belt to night include Tableau Software, Electronic Arts, Fitbit,
Speaker 1: and a I G. Live from the First Breaking News
Speaker 1: Desk on Bill Maloney, Katherine, thank you Bill and to
Speaker 1: hear a love breaking news over your Bloomberg Type A
Speaker 1: s qu a K on your terminal West six is
Speaker 1: senter Media. Crude oilis down forty nine cents a barrel
Speaker 1: of one on a quarter percent to thirty nine fifty
Speaker 1: six ten. Your treasury down four thirty seconds with the
Speaker 1: yield of one point five three percent, and that's a
Speaker 1: Bloomberg business slash. This is taking stock with Gableen Hayes
Speaker 1: and Prim Fox on Bloomberg Radio. New York State has
Speaker 1: proved a plan to generate half of the state's power
Speaker 1: from renewable source sources by the year twenty thirty. They
Speaker 1: joined California and setting one of the most ambitious clean
Speaker 1: energy goals in the nation. And in addition, the plan
Speaker 1: includes billions of dollars in subsidies to keep upstate nuclear
Speaker 1: plants operational while the use of solar and wind energy
Speaker 1: ramps up. Here to tell us more is Kit Connelledge.
Speaker 1: He is senior Industrials and Utilities analysts for Bloomberg Intelligence,
Speaker 1: providing unique in real time research and context on a
Speaker 1: variety of industries as well as markets and government factors
Speaker 1: that affect businesses. Our terminal customers can access this function
Speaker 1: at b I go. Kit thanks very much for coming
Speaker 1: into the studio. Tell us about this plan that has
Speaker 1: passed the New York State Public Service Commission sure UM.
Speaker 1: The idea is to subsidize three nuclear plants upstate. They're
Speaker 1: along Lake Erie. UH, they've been losing money. Um. Nuclear
Speaker 1: is a zero emissions source of power. UH. It also
Speaker 1: provides a lot of jobs and a lot of tax
Speaker 1: taxes for the local communities. So those are all important
Speaker 1: factors and why Governor Cuomo UH and the members of
Speaker 1: the Public Service Commission and unions in the area all
Speaker 1: supported giving subsidies to the nuclear plants. So with zero missions,
Speaker 1: with these very important link to communities and jobs, what
Speaker 1: has been the problem for nuclear power and power plants
Speaker 1: and upraim seems to me that a lot of government
Speaker 1: policies have been against nuclear because they're worried about the
Speaker 1: possibility of a meltdown. They're worried about in of course,
Speaker 1: and that not in my backyard, etcetera. So it's nice
Speaker 1: that York State is turning it around, But hasn't that
Speaker 1: been the problem for nuclear? Yeah? Absolutely, it's Uh, it's
Speaker 1: certainly the problem for building a new nuclear plant. That's
Speaker 1: not going to happen in too many places, although it's
Speaker 1: happening in Georgia and South Carolina. Um. Also, it's very
Speaker 1: expensive to build a new one for the existing plants.
Speaker 1: I think we still see a very significant anti nuclear
Speaker 1: um presence out there, people who are just you know,
Speaker 1: don't like the idea of nuclear plants. They have had
Speaker 1: some problems, some issues. You can debate how serious they were, etcetera.
Speaker 1: But clearly, for example, the state of California decided that, uh,
Speaker 1: within the next eight years, they would close the last
Speaker 1: remaining power plant in California and basically pay off the
Speaker 1: shareholders of p G and E who owns that Diablo
Speaker 1: Canyon plant, uh, and just say, Okay, that's the end
Speaker 1: of nuclear in California. We're going all solar and wind.
Speaker 1: How much is this gonna cost rape pairs? Uh? In
Speaker 1: New York it looks like about two percent. Uh, it's
Speaker 1: about five dred million dollars a year additional payments. That's
Speaker 1: obviously spread out over a lot of electric bills, millions
Speaker 1: of electric bills. UH. It didn't get highlighted because nobody
Speaker 1: has an interest in highlight at the nuclear plant owners
Speaker 1: are happy to have higher profit margins. UH. Governor Cuomo
Speaker 1: and the Public Service Commission are happy to have a
Speaker 1: zero emission source and happy to have the unions supporting them.
Speaker 1: So nobody's going around saying this is really costing your money,
Speaker 1: but it will raise bills by two percent. Some people
Speaker 1: may say that's perfectly well worth it. Well, your excellent
Speaker 1: work on the your North America Dashboard for bluebrig Intelligence
Speaker 1: Electric Utilities. Looking at this whole there, there's a great
Speaker 1: note of political melodrama in here, though, because you point
Speaker 1: out that Excellent and Entergy will perhaps get the first
Speaker 1: nuclear subsidies, but you also point out that Calpine and
Speaker 1: dyning Gy aren't done finding this nuclear aid. Tell us
Speaker 1: about that part of the now. Absolutely, I think there's
Speaker 1: in in other states. When, for example, the state of
Speaker 1: Ohio tried to subsidize h one nuclear plant and some
Speaker 1: coal plants because they were losing money. UH, they were
Speaker 1: overturned by the federal authorities who who ran the UH
Speaker 1: merchant power grid UH the PGM grid. So I think
Speaker 1: that we're gonna see the UH the merchant power gas
Speaker 1: and they don't have metch Cole in New York, but
Speaker 1: the gas plants in New York are gonna be fighting
Speaker 1: against the subsidy because if if you didn't have the subsidy,
Speaker 1: the gas plants would be operating in a market with
Speaker 1: no nuclear plants upstate, and they expect to get higher prices.
Speaker 1: So they're saying, hey, wait a minute. You know, since
Speaker 1: when do they get subsidized and we don't get subsidized.
Speaker 1: It was supposed to be an open market. This is
Speaker 1: a new rule. Now I understand that the three upstate
Speaker 1: plants that are going to participate, this is what Gina
Speaker 1: near Rochester UH, plus the James A. Fitzpatrick and the
Speaker 1: nine mile Point facilities. Those are all north of Syracuse.
Speaker 1: Excellent wants to buy the fitz Fitzpatrick plant from Energy. Correct, Yeah,
Speaker 1: that's correct. The Entergy wants to get out this merchant business.
Speaker 1: They've had enough of it. It's a very volatile business
Speaker 1: and utilities, as you know, are very risk averse company
Speaker 1: owned Indian Point and that's not eligible for at least
Speaker 1: like two years. Well, that's right. They they they're sort
Speaker 1: of stuck with Indian Point. They'd rather not own it,
Speaker 1: but they feel like it's worth a couple of billion dollars.
Speaker 1: So until they get paid, they're they're not shutting it down.
Speaker 1: But if Excellent wants to buy this from them, and
Speaker 1: Excellent is very committed to the nuclear merchant business and
Speaker 1: if they're getting higher margins, they're happy to buy it potentially. Well,
Speaker 1: we're very happy it had you on the show today.
Speaker 1: Kit Connellege, senior industry analysts for Bloomberg in Intelligence, Electric utilities,
Speaker 1: Nuclear subsidies coming to New York State. This is Bloomberg.
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