As recession continues, energy companies are scaling back development and shedding assets in an attempt to keep investors happy and debts low. Last month's plant cancellation announcements was the first time in recent memory where cancellations surpassed new project announcements. And new data shows that about 18 percent of new projects are unlikely to proceed, an attrition rate nearly double that of a year ago.

The high attrition rate may cause problems when the U.S. emerges from the recession and electricity demands increase, for new plants not only replace older, dirtier plants, but also support economic growth. Most plants that will debut in 2002 and 2003 are still on schedule, but plants with completion dates beyond that are subject to cancellation. Four major projects, and nearly two dozen smaller plants were cancelled in California. New York lost one major plant.

Last year 10 percent of all planned power plant projects were cancelled. The combined cancellations leave the future energy supply in question. Because there is no national master plan for power plant construction, there is no guarantee that plants will be built in states where they are most needed