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DEL.ICIO.USMirant energized by growing demand for energy
The Atlanta Journal-Constitution
Mirant CEO Edward Muller told shareholders at this annual meeting this morning that the tightening supply of energy bodes well for Mirant.
Looking ahead, Muller explained how long and difficult it was going to be to build more energy supply.
Mirant does not believe that renewable energies will be able to be the backbone of the system, certainly in the short-term. Coal is out of favor and new plants take six years to permit and build. New nuclear plants can take at least eight years to build. And natural gas will produce “very expensive” electricity.
So Muller said companies with existing generators of energy “will continue to benefit from tightening supply…”
A shareholder questioned Muller about whether Mirant was choosing to neglect its obligation to the country by not investing in new energy supply at this time.
Mulller said the company needed to focus on shareholder value. And while the company would like to be adding capacity, he said that in the current marketplace, it’s a “problem.” He then said: “This is not a good situation.”
After the meeting, Muller spent a little time talking to me about Mirant, which emerged from bankruptcy in January, 2006.
“Because the supply is not keeping up with demand, the price of our product in the market place is going to rise,” he said.
When I asked him about the company’s societal and environmental responsibility in light of climate change, he added: “We are looking at different technologies, always exploring ways we can contribute. There’s a lot of talk, but we are nowhere near, anywhere in the globe, at a point of being able to address these problems.”
With the exception of retired Georgia-Pacific CEO Pete Correll, all of Mirant’s outside directors have come on board since the company emerged from bankruptcy. (Correll joined Mirant’s board in 2000, and he currently serves as its lead director. Muller joined the board in 2005).
Asked how the board was steering the company beyond bankruptcy, Muller said the directors are thoughtful and pose him the hard questions on where the industry is going.
Still, the nine-member board is an all-white-male board. And its executive team is also all white males, a stark difference from its pre-bankruptcy days when several of the top executives were women, including CEO Marce Fuller.
“I think the board is the right size,” Muller said, who mentioned spots could open up as directors retire. “I think it’s an important thing for all boards and companies to have as diverse a board as possible.”
Traditionally, the energy industry has been dominated by men. But Muller said that’s changing, saying: “There are some women who are extremely knowledgeable.”
So do you have any ideas of people who would be good prospects for Mirant’s board?
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