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It was lights out for Manhattan on August 14, 2003.
Stifling heat wave in tow, Manhattan went black on power outages, leaving half a million New Yorkers without power for up to an hour. Traffic lights died. Elevators stopped. Grumpy workers, just wanting to get home, opted to walk or slept, stranded, on hot city sidewalks. Subways were halted.
Yep, it was a bad day to be a New Yorker in 91-degree heat. But it was a heck of a day to be a Beacon Power shareholder after the power returned, as the stock would skyrocket from about 25 cents to more than $1.25 on the blackout news.
Will a similar fate befall New York again? Let’s fairly say that grids can only take so much pressure. And let’s also say that preparedness doesn’t seem to be top priority right now.
What if, given today’s lingering heat, the city had another blackout? To answer this, take a look at the heat wave that gripped much of the West coast. On fears of an over-powered grid, alone, shares of Beacon Power flew from a recent low of about 78 cents to more than $2.10.
Just imagine what this stock would do if New York blacked out again -- a very real possibility in 100-degree-plus heat on higher demand. Now, while you’d think grid operators would prepare and take steps to reduce consumer consumption, they’re not. Says Reuters, “none of the grid operators has yet taken any steps to reduce customer usage or shed load during the heat wave.”
When New York goes black, be sure to own Beacon.
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