Tag Archive: industry


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It is currently discussing engagement of a qualified advisor for review of potential acquisition of positions within the energy industry.

 

“The criteria for such assets will include proven reserves, predictability of flow of energy, calculable revenue stream and ability to control costs to result in good earnings and the ability to add value within a reasonable period of time which includes earnings per share,” according to spokeswoman Jai Morales. “These acquisitions will position the company to increase the breadth of its asset base and secure the company a role in the growing ‘clean energy’ aspect of the industry.  The ability to extend the company’s activity, beyond anything existing, into a growth industry and one that will contribute to the well-being of this country is of importance for the long term.”

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As to the status of the stock, BFHJ will be undertaking a careful review of values. Historically, a decrease in the number of shares has sometimes resulted in a loss of shareholder value.  It is assumed that, if a decrease in the number of shares would be detrimental, to the value and benefit to shareholders, new management will not allow such action to be taken.

 

“Our goal is not short term profit, which is the antithesis of what management of a corporation should achieve for its shareholders. Our goal is to maintain and enhance values for all concerned. The bottom line is that those who think that we intend to take any action, that would negatively impact the value of shares, are simply wrong,” according to Ms. Morales.

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Members of the board and corporate officers will be announced shortly. “The company has decided to take a bit more time in selecting its members. It is desired that members of the board must have a track record and experience that will both create, maintain and continue the growth of the company,” according to Ms. Morales.

Until the Fukushima Daiichi nuclear accident in Japan and a very public internal feud late last year, the Nuclear Regulatory Commission was a fairly obscure federal agency with primary responsibility for regulating the nation’s 104 nuclear power plants.

But when the other four NRC commissioners—two Democrats and two Republicans—ganged up on Chairman Gregory Jaczko last year, accusing the Democratic appointee of bullying and intimidating his fellow commissioners and agency staff, the backwater agency based about 15 miles outside of Washington was suddenly in the spotlight with a good old-fashioned, inside-the-Beltway melodrama.

Six months later, things have settled down at NRC headquarters in Rockville, Md., at least on the surface, but the bitterness caused by the controversy still seems to linger and many lawmakers overseeing the agency continue to raise questions about whether NRC is functioning effectively at a critical time for the nuclear industry.

In a recent interview with National Journal, Jaczko spoke calmly about the debacle. Sitting in his office on the top floor of the agency’s headquarters, the embattled chairman’s words were measured. Reiterating what he has now said many times about the blowup, Jaczko argued that disagreements at an independent commission like NRC are the sign of “a healthy culture.”

“If people wanted everyone who agreed, then they’d save the money and they’d just have one person in charge,” Jaczko said.

There are dozens of independent boards and commissions in Washington, from the National Endowment for the Humanities to the Federal Communications Commission, but rarely has one of them had its dirty laundry displayed like the NRC’s was late last year.

“That was a really unusual circumstance,” former NRC Chairman Richard Meserve, a Democrat, told National Journal in March. “There often are disagreements, but this was one that was very public and that’s unusual.”

The four other commissioners at the NRC wrote a letter in October to then-White House Chief of Staff William Daley, charging that Jaczko had created “a chilled work environment” at the agency by bullying and withholding information from his fellow commissioners. After House Oversight and Government Reform Committee Chairman Darrell Issa, R-Calif., released the letter in December, the floodgates opened, and in hearing after hearing, commissioners testified to lawmakers that Jaczko verbally abused female employees and snapped at fellow commissioners and agency staff.

Republican lawmakers in both chambers called for the chairman’s resignation, but Jaczko has been steadfast in saying he has no plans to step down. The White House and most Democrats, including the chairman’s former bosses Senate Majority Leader Harry Reid, D-Nev., and Rep. Edward Markey, D-Mass., have stood by him.

When Congress returned for its second session in January, it looked as though the firestorm had passed. The commission, plunging itself back into the shadows of regulatory humdrum, went back to its work, dealing with post-Fukushima safety reforms and issuing the first new reactor licenses in the United States in decades.  

All five NRC commissioners appeared before the Senate Environment and Public Works Committee in March, discussing industry safety reforms after Fukushima and appearing to have a united front before lawmakers.

NRC Commissioner William Magwood, a Democrat who was in some ways the leader of last year’s upheaval, told reporters after the hearing that “the atmosphere at the NRC is a bit better than it was a few months ago.”

“We went through a very difficult time, everyone put their thoughts on the table, and we’ve moved on,” Magwood said, adding that the commission has been focused on its work amid “the distractions of the last six months or so.”

Regardless of the image they have put forth, however, there are still visible signs of disagreement among the commissioners. Most significantly, when the commission issued license approvals in February and March for four new reactors—two at a plant in Georgia and two at a plant in South Carolina—the chairman was the lone dissenter in both 4-1 votes.

“I think there’s still mistrust among the commissioners,” former NRC Chairman Dale Klein, a Republican, told National Journal in March. “While that’s not on the front page, I think it’s still lurking,” said Klein, who in the midst of last year’s clash called for Jaczko to resign.

“Trust is something you earn, it’s not a right, and so I think there still is some concern among the other commissioners … if you lose 4-1, as chairman, you’re not doing a good consensus-building,” Klein said.

“I think there’s a fundamental lack of communication, lack of trust,” Klein added, saying that the White House letter and the dissenting votes by Jaczko demonstrate the “disfunctionality” of the agency.

Jaczko has since defended his votes against the new reactors, saying that he and his fellow commissioners simply disagreed over the means of implementing new safeguards.

“We had a disagreement, but nonetheless we moved forward with issuance of the license,” he told National Journal in March. “I wasn’t comfortable doing that, but there was clearly a majority of commissioners who were, so I thought it was appropriate that we move forward and we issued the license,” Jaczko said, again noting that disagreements are healthy for the five-member commission.

This kind of obvious friction, though it may be simply over regulatory policy, just fuels the fire for those would prefer to keep last year’s controversy alive.

Rep. Mike Simpson, R-Idaho, chairman of the House Appropriations Interior and Environment Subcommittee, told Jaczko in March that his voting is a troubling sign that all is still not well at the agency, while Rep. Rodney Frelinghuysen, R-N.J., chairman of the House Appropriations Energy and Water Development Subcommittee, called the “apparent, and perhaps real, friction” at the agency “disturbing.”

After Jaczko’s most recent dissenting vote on two new units at Scana’s Virgil C. Summer plant in South Carolina, House Energy and Commerce Chairman Fred Upton, R-Mich., called Jaczko “the lone obstacle blocking a full embrace of our nuclear future.” Though he praised the commission for approving the new licenses, Upton noted that he is still “deeply concerned by the politicization that has contaminated its leadership.”

In the Senate, the ranking Republican on the Senate Environment and Public Works Committee, James Inhofe of Oklahoma, didn’t shy away from the opportunity to call out Jaczko for his vote as well.

“I’m not surprised that NRC Chairman Jaczko opposed the license for these reactors in South Carolina just has he opposed the license for the reactors that will be built in Georgia,” Inhofe said, aligning the controversial agency head with President Obama.  

“The good news is that despite the Obama administration’s efforts to stop energy development in this country, these reactors will be built, thousands of jobs will be created, and Americans will have increased access to reliable, affordable energy,” Inhofe said.

Meanwhile, the NRC’s inspector general is still conducting an investigation of last year’s allegations and whenever a report is released, it is sure to reopen some of these wounds. An IG report last June already criticized the chairman for not being “forthcoming” with his fellow commissioners leading up to the shutdown of the controversial Yucca Mountain nuclear-waste repository in Nevada.

Despite the still-swirling controversy, the NRC’s employment website, along with Jaczko himself, continues to tout the agency as “a great place to work.” For many years now, even including 2011, the agency has topped the list of rankings for best places to work in the federal government. Whether that superior ranking will stay put, however, likely depends on whether the embattled regulatory agency can plunge itself back into the obscurity from which it emerged last year.

The Nuclear Regulatory Commission on Friday gave Scana Corp. permission to build two new nuclear reactors in South Carolina, making it the second power company in two months to get a nuclear license approval. Before the Atlanta-based Southern Co. was granted a license on Feb. 9, the NRC had not issued any new reactor licenses since 1978.

The license approval gives the South Carolina-based Scana the go-ahead to begin construction of two new units at its Virgil C. Summer plant near Jenkinsville, S.C. The commission issued the license in a 4-1 vote, with NRC Chairman Gregory Jaczko dissenting.

Leaders of the nuclear industry are ecstatic about new reactor construction following a 34-year hiatus in the wake of the 1978 accident at the Three Mile Island nuclear plant in Pennsylvania.

“This will be one of the largest construction and engineering projects in South Carolina history,” Marvin S. Fertel, the Nuclear Energy Institute’s president and chief executive officer, said in a statement lauding the Friday approval. “It will create thousands of well-paying jobs during construction and provide careers for several hundred more people over the decades that the new reactors will generate electricity.”

Both the Scana and Southern units will be AP1000 Westinghouse reactors, a new reactor design approved by the NRC late in 2011. The first units for both companies should be in operation by 2016, with Southern’s second reactor coming next by 2017 and Scana’s by 2019.

Other companies that have applied for construction and operating licenses for new nuclear reactors with the NRC include Duke Energy, Progress Energy, Exelon, NRG Energy, Dominion Resources, NextEra Energy, and Energy Future Holdings.

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For two weeks, ABC News has been running with its scoop about “pink slime,” or what the meat industry prefers to call “lean finely textured beef.” The stuff is an unappetizing but apparently safe filler that meat packers add to the ground beef sold in the nation’s grocery stores without a mention on the label.

“Critics,” ABC reported, “including former USDA scientists, contend the ammonia-treated `pink slime’ — made from low quality scraps once used for dog food and cooking oil — is less nutritious than pure ground beef.” Since the story broke, major grocery chains such as Safeway, Publix and Whole Foods, have discontinued using the filler, and the Agriculture Department agreed to disclose to school districts which suppliers deliver beef containing “pink slime.”

On Thursday, Agriculture’s relevant official weighed in via a blog post. Dr. Elisabeth Hagen, undersecretary for food safety, wrote that she approaches her role in the dispute “not only as a food safety expert and a physician, but also as a mother.” She said it is “important to distinguish people’s concerns about how their food is made from their concerns about food safety. The process used to produce LFTB is safe and has been used for a very long time. And adding LFTB to ground beef does not make that ground beef any less safe to consume.”

Charlie Clark joined Government Executive in the fall of 2009. He has been on staff at The Washington Post, Congressional Quarterly, National Journal, Time-Life Books, Tax Analysts, the Association of Governing Boards of Universities and Colleges, and the National Center on Education and the Economy. He has written or edited online news, daily news stories, long features, wire copy, magazines, books and organizational media strategies.

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Long-in-the-works improvements to the White House-managed website Regulations.gov made public on Tuesday are drawing praise from advocates from both camps in the ongoing debate over how heavily the government should regulate.

Cass Sunstein, administrator of the Office of Regulatory and Information Affairs, said in a blog post Tuesday that “Regulations.gov has launched a major redesign, including innovative new search tools, social media connections and better access to regulatory data. The result is a significantly improved website that will help members of the public to engage with agencies and ultimately to improve the content of rules.”

The upgraded central portal continues the regulatory review initiative President Obama launched in a January 2011 executive order, Sunstein said, and also is in keeping with the Obama administration’s Open Government Partnership National Action plan to engage the public through increased government transparency.

In technical changes, the new site allows users to better download and repackage data and text because it incorporates application programming interfaces. It also offers a more user-friendly search engine and sorting terms.

The site now is organized so users can browse regulations in 10 major categories, such as aerospace and transportation and banking and financial. This change “moves us closer to meeting the recent Jobs Council recommendation to enable regulations to be searched by North American Industry Classification System” codes used by federal agencies, Sunstein wrote. Lay users can click on a tab labeled “learn” to get an overview of the U.S. regulatory process.

Regulatory specialists contacted by Government Executive were pleased with the new site.

“This is an improvement in terms of public access and transparency,” said Amit Narang, regulatory policy advocate for Public Citizen’s Congress Watch project. “Public Citizen now encourages OIRA to direct their energies toward releasing important public health and safety protections currently languishing under OIRA review well beyond the 90-day limit so that the public can have their chance to comment on those rules and participate in the process.”

Rosario Palmieri, vice president for infrastructure, legal and regulatory policy at the National Association of Manufacturers, said, “realizing the goal of a one-stop shop for regulatory compliance for small manufacturers is an important one. This announcement brings us closer to that goal, but it is still only a step in that process and more needs to be done.” The association, he added, continues to be concerned that “the cumulative burden of regulation is a significant cost for manufacturers. The added challenge for small companies is keeping up with an ever increasing and changing set of requirements.”

Rep. Sam Graves, R-Mo., chairman of the House Small Business Committee who challenged Sunstein’s approach to regulation during a hearing in September 2011, said: “I appreciate any efforts from the White House to help small businesses provide comment on and deal with complex federal regulatory compliance, but small businesses want action on the regulations themselves. Since Inauguration Day, the administration has imposed about 75 new major regulations with annual costs of $38 billion.

“Small businesses still cite regulations as their greatest barrier to growth,” he continued. “In addition to helping small firms navigate compliance with regulations, I would encourage the administration to actually pull back on many of the unnecessary regulations and comply with the Regulatory Flexibility Act, which will give small businesses some relief as they try to grow and create jobs in a stagnant economy.”

Katie Greenhaw, a regulatory policy analyst at the nonprofit OMB Watch, said: “Though the most obvious changes are cosmetic, they are important, and a lot of thought has been put into the site to improve usability.”

Though her group “hasn’t seen all the substantive changes we’d like to see, this sets the stage,” she added. An example is the 10 categories of regulations, which she says could be balanced with a more selective “what’s hot” feature. The “learn” tab, she said, provides a “fabulous overview of the regulatory process that will be helpful as a step toward pubic engagement.”

STAYING IN PLACE: Deposits into U.S. stock mutual funds roughly equaled withdrawals in January, industry consultant Strategic Insight said on Monday. It snapped an eight-month streak of investors pulling their money out each month. The string ended as the stock market had its best January in 15 years.

BONDS RETAIN APPEAL: Bond funds remained popular, attracting $32 billion in new cash. Taxable bond funds attracted $26 billion in net deposits, with municipal bond funds attracting $6 billion.

MONEY-MARKET REVERSAL: A net $44 billion was withdrawn from money-market funds, marking a reversal from the $39 billion these funds attracted in December.

BAILOUT BLUES: U.S. stocks took their biggest slide so far this year on news that European countries that share the euro with Greece want it to make deeper spending cuts in exchange for bailout money. Stocks had risen just a day before on hopes the bailout was imminent.

EVERYONE DOWN: The declines were broad with all ten industry groups in the S&P 500 stock index down. Materials stocks fell the most, 1.8 percent. Jeans maker True Religion Apparel plunged 28 percent after its earnings fell far below what analysts were expecting.

GOLD DID WHAT?: The safe-haven metal usually rises when stocks fall, but on Friday it fell 1 percent. “People are speculating, and so the drop could get bigger,” said Mark Matson, CEO of Matson Money.

WASHINGTON – Federal regulators have appointed a top government auditor as a member of the Public Company Accounting Oversight Board, which polices the accounting industry.

The Securities and Exchange Commission on Friday announced the appointment of Jeanette Franzel, a managing director of the watchdog Government Accountability Office, to the five-member PCAOB. The board was created by Congress in 2002 in response to the corporate scandals that began with Enron.

The SEC oversees the accounting board. One of the five SEC commissioners, Luis Aguilar, voted against Franzel’s appointment. He said Franzel lacks “a demonstrated commitment” to investors’ interests, as required by the law establishing the board.

Franzel’s department at the GAO questioned in December whether companies should be required to rotate the accounting firms that audit them, something being considered by the board.

WASHINGTON – President Barack Obama hailed the rebound of the U.S. auto industry on Tuesday, trumpeting an economic story he hopes to use to his political advantage in key Rust Belt states such as Michigan and Ohio. In a not-so-veiled shot at Republican presidential front-runner Mitt Romney, Obama said it was worth remembering that there were some leaders “willing to let this industry die.”

Obama sat inside shiny new plug-in electric hybrids and burly trucks during a quick tour of the Washington Auto Show, declaring, “The U.S. auto industry is back.” Obama emphasized his administration’s rescue of General Motors and Chrysler from the brink of collapse as Romney was surging in Florida’s GOP primary, a contest that could bring him a step closer to winning the Republican nomination.

The president did not mention Romney by name, but told reporters it was “good to remember the fact that there were some folks who were willing to let this industry die. Because of folks coming together we are now back at a place where we can compete with any car company in the world.”

Romney spokeswoman Andrea Saul said the former Massachusetts governor was “thrilled” to see the companies’ success but said it was “unfortunate that the government first attempted a bailout, which was precisely as unsuccessful as he predicted, cost taxpayers billions, and left the government improperly entangled in the private sector.”

For Obama, the auto bailout has been a case study for his efforts to revive the economy and a potential point of contrast with Romney, who opposed Obama’s decision to pour billions of dollars into the auto companies. The president’s campaign views the auto storyline as a potent argument against Romney, the son of a Detroit auto executive who later served as Michigan governor.

Indeed, the auto show tour was just another example of the White House taking every opportunity to highlight its efforts to rebuild the auto industry, with aides frequently pointing to GM’s reemergence as the world’s largest automaker and job growth and profitability in the U.S. auto industry.

“The fact that GM is back, number one, I think shows the kind of turnaround that’s possible when it comes to American manufacturing,” Obama said.

As the industry was collapsing in the fall of 2008, Romney predicted in a New York Times op-ed that if the companies received a federal bailout, “you can kiss the American automotive industry goodbye.” Romney said the companies should have undergone a “managed bankruptcy” that would have avoided a government bailout.

“Whether it was by President Bush or by President Obama, it was the wrong way to go,” Romney said at a GOP presidential debate in Michigan in November. Romney said the nation has “capital markets and bankruptcy — it works in the U.S. The idea of billions of dollars being wasted initially, then finally they adopted the managed bankruptcy. I was among others that said we ought to do that.”

Both the Bush and Obama administrations found themselves in uncharted territory in the fall of 2008 and early 2009. GM and Chrysler were on the verge of collapse when Congress failed to approve emergency loans in late 2008. Bush stepped in and signed off on $17.4 billion in loans, requiring the companies to develop restructuring plans under Obama’s watch.

The following spring, Obama pumped billions more into GM and Chrysler but forced concessions from industry stakeholders, enabling the companies to go through swift bankruptcies. Obama aides said billions in aid — about $85 billion for the industry in total — was necessary because capital markets were essentially frozen at the time, meaning there was no way for GM and Chrysler to fund their bankruptcies privately.

Without any private financing or government support, they argued, the companies would have been forced to liquidate.

Obama has tried to turn the tough decision into a political advantage in Ohio and Michigan, which Obama carried in 2008 and where unemployment has fallen of late. During last week’s State of the Union address, Obama said the auto industry had hired tens of thousands of workers, and he predicted the Detroit turnaround could take root elsewhere.

Yet Obama’s poll numbers in places like Ohio and Michigan remain in dangerous territory, under 50 percent, and the auto industry argument carries some inherent risks.

A Quinnipiac University poll in Ohio released Jan. 18 found Obama locked in a virtual tie with Romney in a hypothetical matchup, with about half the voters disapproving of Obama’s performance as president. A poll in Michigan released last week by Lansing-based EPIC-MRA found 48 percent supporting Obama and 40 percent backing Romney in a potential matchup.

Republicans say the bailout still remains unpopular and the government intervention was hardly a cure-all. “The industry was bailed out but a lot of people lost their jobs,” said David Doyle, a Michigan-based Republican strategist.

In a nation still soured on bailouts, the government owns more than a quarter of GM. The Treasury Department estimates the government will lose more than $23 billion on the auto bailout: GM is trading at $24 a share, well below the $53-per-share mark needed for the government to recoup its investment in the company.

Romney, facing attacks from Democrats on his work at private equity firm Bain Capital, has tried to use the GM and Chrysler cases to insulate himself against charges his firm gutted companies and fired workers. “How did you do when you were running General Motors as the president?” Romney said in a December debate. “Gee, you closed down factories. You closed down dealerships. And he’ll say, well I did that to save the business. Same thing with us, Mr. President.”

Obama, Vice President Joe Biden and others say the decision, while unpopular, saved an estimated 1 million jobs throughout the Midwest and say the industry is coming back.

As a result of the restructuring, the companies can make money at far lower U.S. sales volumes than in the past. Industry analysts predict U.S. sales will grow by at least 1 million this year over last year’s 12.8 million units as people replace aging cars and trucks. And North American operations at GM, Chrysler and Ford are thriving, boosting their companies’ earnings — all signs that Democrats say will make the difference in the Midwest.

“I don’t know how any reasonable person can fail to acknowledge that this rescue plan worked and the country has benefited,” said former Ohio Gov. Ted Strickland, a Democrat.

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AP Auto Writer Tom Krisher in Detroit contributed to this report.

Copper prices rose for the third straight day Thursday on growing hopes that economic growth will boost demand.

Copper for March delivery continued a rally that started Tuesday, rising 4.8 cents to end at $3.8005 per pound. That leaves copper up nearly 5 percent for the week.

Copper prices often rise when traders think the U.S. economy is poised to grow. Copper is used as raw material in the construction industry. Factories also buy it make various kinds of consumer devices.

Investors gained confidence about the economy after the government said the number of people seeking unemployment benefits plunged last week to the lowest level since April 2008. In recent years the weak labor market has dragged down consumer spending, which accounts for a large part of U.S. economic activity. If spending increases because more consumers get jobs, it could boost demand for copper at factories and construction sites.

In other trading, precious metals prices fell. Silver for March delivery fell 3.4 cents to $30.509 an ounce. Gold for February delivery lost $5.40 to end at $1,654.50 an ounce.

Industrial metals were mixed.

March palladium rose $9.90 to $678.40 per ounce. April platinum closed down $7.30 at $1,518 an ounce.

In energy trading, benchmark crude oil fell 20 cents to $100.39 per barrel on the New York Mercantile Exchange. Heating oil rose 2.26 cents to $3.036 per gallon, gasoline futures dropped 0.96 cents to $2.8158 per gallon and natural gas fell 15.3 cents to $2.363 per 1,000 cubic feet.

March agriculture contracts rose.

Wheat rose 13.5 cents to end at $6.0575 per bushel, corn gained 12.5 cents to $6.06 per bushel and soybeans closed up 13.5 cents at $11.97 per bushel.

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