Beyond power, we convert as much as 60 million gallons of seawater into fresh water each day in the deserts of Oman and Qatar. We not only burn coal, we also mine it'in Kazakhstan and soon in the US. We recover CO2 as a byproduct of our coal-fired plants for use in various products, like carbonated beverages. We manage steam distribution facilities to heat homes in Kazakhstan and bring similar management services to other power-related markets. Building on our heritage of environmental stewardship and our portfolio in wind generation and other renewable, we are seeking ways to expand our alternative energy business, for example, by establishing carbon offset programs in the agriculture and forestry industries. We are also actively seeking opportunities to expand our activities in developing and operating liquefied natural gas (LNG) degasification terminals. Across this broad spectrum, we report our businesses under three segments in our financial statements: Contract Generation, Competitive Supply and Regulated Utilities. These contracts also may enable us to acquire fuel at more competitive terms or prices. Relatively stable and predictable earnings and cash low characterize these businesses. Our Competitive Supply businesses sell power to wholesale customers in competitive markets in seven countries, typically under short-term contracts or into daily spot markets. We utilize coal, gas, water, oil, petroleum coke and biomass to fuel these plants. Weather, electricity transmission constraints, fuel prices and competition can affect demand. This line of business, while offering more varied earnings and cash flow, also offers opportunities for higher profitability for low-cost production facilities in strong demand markets. Our Regulated Utilities in seven countries sell electricity to residential, business and government customers through integrated transmission and distribution systems under exclusive concession contracts. Reliability of service, changing demand for electricity, working capital management, and, in developing countries, reduction of commercial and technical losses, are important influences on earnings and cash flow. Our utilities in emerging markets, like Ukraine and El Salvador, offer good growth potential as they experience increasing demands for additional and more reliable sources of electricity. In Pakistan we have two units Lal Pir and Pak Gen. |
