Stephen I. Chazen, Senior Executive VP and CFO, Occidental Petroleum
Richard Stavros is Fortnightly's Executive Editor.
Energy experts have long speculated that PUHCA was a big barrier for oil majors consolidating with the utilities industry. Do you find the power utilities industry more attractive now with the repeal of PUHCA? And what are your views on further convergence?
Stephen I. Chazen: I think it is unlikely. I don't think the problem was PUHCA. Running power plants is really not what oil companies do. And you also have-even though you are allowed to do it-you do have the rate regulation problem. Most oil companies don't like any more government regulation than they currently have. I think it is pretty unlikely except as an ancillary activity. I don't see an oil company wanting to buy a Consolidated Edison or something.
I do see that Occidental Petroleum owns 2,100 MW of power plant. What type of plants do you operate?