London, July 2010

Strategic Directions in the US Electric Utility Industry – 2010: Following the deep recession of 2009 the US Economy has levelled off and entered what could be an extended period of slow growth. The strength of financial institutions is recovering from unimaginably weak levels; and credit is increasingly available at moderate rates for high quality, reasonably leveraged opportunities. Counterbalancing these positive indicators are the yet to be known economic impacts of sovereign risks in the European Union, continued high unemployment and the inevitability of substantial tax increases lingering on the near-term horizon. From an energy point of view, the events of late 2008 and 2009 resulted in considerable US and European energy demand destruction that will take several years to recover.

By Stephen A. Stolze; Black & Veatch Corporation