PhillyInc

C&D Technologies Inc. Chief Executive Officer Jeffrey A. Graves received $568,1000 in compensation in the 2007 fiscal year, the Blue Bell, Pa.-based company said in a filing with the Securities & Exchange Commission. Graves, 46, got a base salary of $500,000, a bonus of $45,000 and other compensation of $23.,100. He has been chief executive of the maker of power storage systems since July 2005. Last month, the company reported a wider-than-expected fiscal fourth quarter loss. -- Jonathan Berr

Pepco Holdings Inc., which serves utility customers in New Jersey, Delaware, Maryland, Virginia and the District of Columbia, probably wishes it never sold scrap transformers which may have contained cancer-causing PCBs to a company in Philadelphia in the early 1970s.
Now the Washington-based company and its Delmarva Power & Light unit, which also sold transformers there, are among the parties who have to pay to clean up what is known as the Metal Bank/Cottman Avenue site.
As of March 31, Pepco had accrued $1.7 million to meet its liability. The final settlement costs haven't been determined but the company doesn't expect it to have a material impact on its earnings, according to a filing with the Securities & Exchange Commission.

Now this is interesting: John Rowe, CEO of Exelon Corp., which owns PECO Energy, gave a detailed presentation today at the annual conference of the industry's trade group, the Nuclear Energy Institute, which he now chairs. (See Inquirer story here). PhillyInc's favorite quote is right on top: "I believe we are best served by cold-blooded analysis, and I fear that we place ourselves at risk if we start believing our own press releases." Not the kind of public statement one hears everyday from a major CEO. Exelon under the gentle-spoken Rowe has become a leader in construction and operation of nuclear power plants, which may be about to see true glory days, thanks to high oil prices. Rowe enumerates nuke's strong present and bright future, then socks the government: "We all know that the federal government has failed to meet its obligations under the Nuclear Waste Policy Act." (Read full text here). Rowe doesn't name the Bush administration specifically, but he did last month during Exelon's annual meeting, telling PhillyInc an interview: "The Bush administration has been against any (new energy) bill," and that Democrats and Republicans in Congress have been divided among themselves for six years. But he expects all that to change in 2008, saying the Republican defeat last November and the odds of a Democrat taking the White House in 2008 mean that, "no matter what, there will be climate and energy legislation by '09 or '10." His speech summary: Rowe called for a long-term interim storage system as a "workable alternative" to using the Yucca Mountain site. He said the government must work to "meet its obligation" to remove spent fuel from reactor sites. Rowe expressed concern that current state regulatory models will not “support the level of expenditure necessary to construct the next generation of plants.”

- Thomas Ginsberg

Imperium Renewables Inc,, one of the largest makers of biodiesel fuel, says it will build a production facility in Philadelphia to tap the growing demand for the environmentally friendly fuel in the U.S. and Europe.

The company expects to lease an 8.5 acre site in Philadelphia during the second half of the year, according to a filing today with the Securities & Exchange Commission. Construction is scheduled to begin next year on the 100 million gallon per year capacity plant with completion slated for early 2009.

"Our East Coast location will give us a cost advantage over our competitors who must transport biodiesel via rail or road to the East Coast," the filing said. "Additionally, several U.S. East Coast states have enacted laws that mandate or encourage the use of renewable or low emissions fuels or that provide tax or other incentives for renewable fuels, which we believe will stimulate demand for biodiesel."

Last week, Seattle-based Imperium, which also is going public, opened a plant near Grays Harbor, Wash., with a capacity equal to what's planned for Philadelphia. On a capacity basis, the $78 million plant, is the biggest in the U.S., according to the National Biodiesel Board. The company's plant would join one a much smaller in the area operated by Philadelphia Fry-O-Diesel LLC, which converts restaurant grease to fuel. That company hopes to have a commercial-scale plant with a capacity of 3 million gallons next year.

"They serve a very, very different market than we do," said Fry-O-Diesel president Nadia Adawi, who was aware of Imperium's plans. "Their model is not to serve the local market. I don't think we will be competing with them at all."

Philadelphia provides Imperium with a central location to supply Baltimore-based power company Constellation Energy Group Inc. with biodiesel for power plants in 20 states and the District of Columbia under an exclusive contract.

"However, under our contract with Constellation, we may lose this status if we are unable to timely commence operations of our U.S. East Coast production facility," the filing said.

In addition to Philadelphia, Imperium also is planning to build plants in Hawaii and Argentina. The company also is "evaluating" sites in Belgium, China and the Philippines. An Imperium spokesman declined to comment, citing the so-called "quiet period" in which limits the companies going public can release.

Biodiesel is growing from a niche product targeted environmentally conscious consumers to a big business. This year, domestic production is expected to reach more than 300 million gallons, up from 25 million in 2004, according to the National Biodiesel Board, which estimates that demand for the environmentally friendly fuel has tripled in each of the past three years.

"The industry is growing pretty rapidly right now thanks to people's interest in renewable fuel and finding out about more diesel vehicles," said Amber Thurlo Pearson, a board spokeswoman.

- Jonathan Berr

American Water Works Co. Inc. disclosed a surprising risk to its business in the prospectus to go public it filed today the Securities & Exchange Commission: water conservation.

The Voorhees company matter-of-factly points out that residential water use is going down thanks to "more efficient household fixtures and appliances among residential consumers, combined with declining household sizes in the United States," the filing said.
"For example, areas with higher per customer residential water use (primarily due to lawn irrigation) will generally have a greater projected decline in the long term since the conservation potential is greater."

The company's bottom line could be hurt if rate increases don't offset the decline in usage, the filing says.

To be fair, American Water Works isn't against conservation. In fact, its Web site says. "using water wisely makes the best use of this important resource and can reduce your household water bill and help protect the environment."

- Jonathan Berr

When Holtec International Inc. Chief Executive Krishna “Kris” Singh founded his company in 1986 to develop technology to increase the amount of spent fuel rods that can be stored in nuclear power plants, he figured customers would flock to him. He couldn’t have been more wrong.
“I am not a natural salesman,” Singh, 60, told PhillyInc. “In the early years of Holtec’s business, I struggled with it.”

Eventually, he overcame his weaknesses as a salesman and convinced the nation’s nuclear power industry that Holtec could help them address the problem of storing radioactive spent fuel rods. Sales at the closely held Marlton-based company then took off, as did the profits, which Singh declined to disclose.

The company, which Singh says has an order backlog of $3 billion, has about 300 employees. Holtec says its technology is used in reactors in the U.S., Canada, China, Mexico, Spain, Switzerland, Korea, Brazil, the United Kingdom and Taiwan.

Earlier this month, Holtec grabbed headlines when it won a 200 million euro ($269 million) contract to design, license, establish and commission a fuel storage facility at the Chernobyl facility in Ukraine, the 1986 site of the worst accident in the history of nuclear power. The company plans to employ 60 to 80 people in Ukraine and is looking to buy and office building in the country's capital of Kiev.

Notably, Singh said he takes $1 from his salary each year and has his company donate the rest to his charitable foundation. Singh’s foundation has donated $20 million to his alma mater, the University of Pennsylvania’s School of Applied Sciences and Engineering, to create the Krishna P. Sing Center for Nanotechnology. It was the largest gift in the history of the engineering school, where he got has Phd.

PhillyInc: For people who haven’t heard of Holtec, can you briefly describe it?
Singh: Our company is essentially an energy technology company. … Our main focus is to develop equipment so power plants can operate more efficiently and more safely …. Most of our revenue comes from commercial nuclear power.

We love when John Rowe, CEO Exelon Corp. (NYSE: EXC), opens his mouth. The owner of Peco Energy Co. here and Commonwealth Edison in Chicago almost always tosses out some unexpected pearls of frankness or at least exuberence. Maybe it's his Midwestern lack of pretense. Anyway, last week on CNBC he was asked about Exelon's $747 million settlement in an Illinois rate case inucurred by its profitable power-generation division. He played down the predictable and simmering talk of breaking up Exelon. But he did it so entertainingly:

"Look at this city behind you. Would you want not to provide service to this great city? Look at downtown Philadelphia. Would you not want to be their service provider? We believe in the long run there’s still strength in having the two companies together. Our investors are divided on the subject. So are some of my managers. As long as both companies are treated in accordance with the rules that apply to them, I think there’s strength for the consumer and strength for the investor. I love this city and it would be hard to give up turning on its lights.”

He was also asked about Exelon's outlook for acquisition of wind or solar generation, and mixed his metaphor so nicely:

“Lust springs immortal, but we’re not the only one who sees their value, so the prices tend to be very high.”

- Thomas Ginsberg

Global warming isn't just a problem, it's an opportunity for American businesses, says Ralph Izzo, chairman of New Jersey's Public Service Enterprise Group. In testimony today (Download the text) before the U.S. House Select Committee on Energy Independence and Global Warming, Izzo called for a national cap-and-trade program to limit carbon emissions and insisted that U.S. companies could benefit. If Congress gets the incentives right, he said, meeting the climate-change challenge "will unleash our nation’s innovative skills, create jobs, and truly transform the economy."

- Jeff Gelles

As crude oil watchers continue to wonder when and if black gold will hit the milestone $100-per-barrel mark, we take you on a trip down memory lane for some perspective on things. A ride through the newspaper clips might make you wonder -- haven't we sort of been here before? Aren't we all still here to talk about it?

Before beginning, we ask: Do you remember Abscam? The Iranian hostage crisis? When the 76ers, the Flyers and the Phillies all made it to the championship in the same year? If so, then chances are high that you also remember that in 1980 -- a year of extreme highs, it seems -- crude oil set a price record that would stand unbroken to this day.

Until now. Or, possibly, very soon.

Depending on who's doing the math, rising crude oil prices are only a few dollars away from breaking the 1980 record that made rising oil prices a nearly-daily headline. Back in early 1980, oil hit $38 a barrel. Adjusted for inflation, that would be worth $96 to $103 or more today, according to The Associated Press. Oil reached a $99.29 high last week but futures dropped today to about $97 a barrel. One reason? The Organization of the Petroleum Exporting Countries (OPEC) may be poised to increase supply.

Anxiety about crude 27 years ago sounded awfully similar to the way today's turmoil is playing in the headlines. OPEC was just one of the daily refrains in coverage of steep prices and economic anxiety back then in The Inquirer:

Another sharp increase in world oil prices could seriously worsen the already gloomy outlook for the nation's economy this year, President Carter and his advisers said yesterday.

- From a January 31, 1980 story.

"The immediate issue is how to get through the early 1980s with a well-functioning economy."

- Harvard University energy experts Robert Stobaugh and Daniel Yergin, from a February 7, 1980, story.

There'll be plenty of gasoline, but you'll be paying plenty for it.

- Headline from a February 28, 1980, story.

The Organization of Petroleum Exporting Countries (OPEC) has engaged in a pricing free-for-all that has more than doubled world oil prices since early 1979.

- From a June 9, 1980 story.

Heated words on the state of gas prices.

- Headline from a June 19, 1980 story.

On the bright side: Although some economists fear we may be entering a recession, the fact of the matter is that the national economy still is holding up pretty well compared to 1980, when inflation and unemployment were considerably higher.

OPEC ministers will be meeting next week. Let's wait and see what happens.

- Maria Panaritis

The stock price of Exelon Corp., the Chicago-based parent of Peco Energy and Exelon Generation Co. L.L.C. in Philadelphia, has bubbled up steadily over the last year and hit a five-year high in the last few weeks. Turns out that's particularly good for chief executive officer John W. Rowe: He has exercised stock options valued at nearly $54 million so far this year, including $3.6 million last week alone, according to InsiderScore and SEC filings. Compare that with his compensation last year of $10.9 million. He made the sales under his 10b5-1 stock plan, which allows insiders to prearrange their sales. Rowe set these sale dates in September 2006 and seemed to pick well. Exelon closed yesterday at $82.30, nearly 38 percent above a year earlier. Says spokeswoman Jennifer Medley: "We are a pay-for-performance company, and when the company does well, our executives do well."

- Thomas Ginsberg

It's not quite annual report season, but Exelon Corp. is always one of the first to file its Form 10-K with the Securities and Exchange Commission.

At 434 pages, Exelon's 10-K is required reading for anyone who needs to understand how the Chicago-based power company keeps the lights on.

It's a trove of nuggets such as:

* Exelon had 17,800 employees companywide as of Dec. 31. Of those, 2,300 were employed at its Peco subsidiary. (At the end of 2006, Exelon employed 17,200 people, including 2,100 at Peco.)

* Peco intends to spend $394 million in capital expenditures to add new substations in South Philadelphia and the University City sections as well as to expand substations in Newlinville, Chester County, and Upper Providence, Montgomery County.

* Peco has about 1.6 million electricity customers and 480,000 natural gas customers.
And Exelon expects to spend $731 million for nuclear fuel for the 11 power plants in which owns an interest, such as Limerick in Montgomery County.

- Mike Armstrong

Going "green" isn't a new trend.

Every prolonged spike in the price of crude oil has spurred companies and individuals to try new ways to reduce their use of petroleum whether as a fuel or industrial raw material.

Still, experimentation with non-fossil fuels should be encouraged, especially if you believe that one day every country will be abiding by some carbon emissions cap.

But make no mistake, changing the carbon bootprint of the United States is going to be expensive. If there were a cheap, simple substance to replace oil, it would have been adopted long ago.

The electric power industry says it's willing to ride the green wave, but Exelon Corp. CEO John Rowe gave a speech Tuesday warning about the cost. That's in greenbacks rather than greenfields.

Remember Exelon Corp.'s John Rowe earlier this week talking about the $400 billion that utilities will have to spend to build power plants that have low-carbon emissions?

Gilbert Masters, a Stanford professor emeritus, gives a good reason why there's some urgency. He says current oil supplies in all nations would last the world for only about 41 years.

Others have predicted the end of petroleum, but Masters actually appears to see signs of hope and would throw some more business to the electric power generation industry. He's bullish on the development and wider adoption of electric-powered vehicles.

Why?

"Electricity is an inexpensive fuel," said Masters who advocates generating electricity for cars from sunlight using photovoltaic technology.

And while you might think that kind of talk only plays well in California, consider that a company that makes a raw material to make solar cells today broke ground to build a new manufacturing plant in Fairless Hills. AE Polysilicon says it would employ 145 people at the factory, which is in a low-tax Keystone Opportunity Improvement Zone.

- Mike Armstrong