KenGen's expected new proposed tariffs for all new projects (in the PIBO prospectus) are considerably higher (particularly for hydro & geothermal)...since the emphasis is on building geothermal capacity,KPLC will have to pay more in the future for every unit it buys...you just have to look at the negative net working capital & finance costs in 2009 to see how strained they're in maintaining cashflows to meet current fuel costs...the last time these two items this high was in 2003 when the interim PPA was signed. I believe KPLC's future will rely on its ability to manage its debts...dividend policy will remain conservative and KPLC is going to go further into debt to afford the higher tariffs and cost push pressures from fuel costs. They'll continue to make money as long as consumers don't revolt!
The process by which banks create money is so simple that the mind is repelled.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden