[EIDXA] S&P Report Voices Skepticism Over BPL

[Jim Spencer]

----- Original Message ----- 
From: Ken Brown 
To: BPLandHamRadio at yahoogroups.com 
Sent: Tuesday, October 26, 2004 11:47 AM
Subject: [BPLandHamRadio] S&P Report Voices Skepticism Over BPL




S&P Report Voices Skepticism Over BPL

In a report published by Standard & Poor's titled "Broadband Over 
Power Lines: What Is It and Why Now?" analysts questioned whether 
utilities would be successful in the new technology, given poor 
performance in the past with diversification technologies, calling it 
a "crap shoot," Electricity Daily reported. 

The report stated there are positives about the fledgling technology, 
including the fact the infrastructure is in place already. The report 
noted: "Nevertheless, incremental capital will have to be expended to 
effectively deploy the technology in its service territory. In 
addition, a utility must partner with an Internet service provider to 
manage the network and provide content, thus remaining only a 
broadband supplier or wholesaler." 

Another problem, the report said, is "the prospect that once the 
utilities begin earning incremental returns on assets that are in 
rate base and earn a current return (i.e., T&D lines), regulators may 
take notice and require utilities to share at least a portion of that 
return with their ratepayers." 
Electricity Daily, Oct. 26.