New Opportunities: Southern Nuclear Operating Co. announced that its board of directors elected Joseph (Buzz) Miller as senior vice president of nuclear development. Miller is currently the vice president of government relations for Southern Co.
In “Rate-Base Cleansings: Rolling Over Ratepayers” (November 2005, p.58), Michael Majoros urges state public utility commissions to recognize a refundable regulatory liability for past charges to ratepayers for non-legal asset retirement costs.
During the 1980s and early 1990s, integrated resource planning (IRP) was a required practice for many utilities. Then competitive wholesale markets, merchant generation, and restructuring initiatives led many utilities to abandon IRP.
While wholesale competition generally has been successful, the regulatory process changes it brought were less so. And utilities now are getting back into long-term resource planning studies to provide decision support for their “back to basics” business strategies.
The stars would seem to be aligned for a renaissance of nuclear power in the United States. Fossil-fuel prices are historically high, political uncertainty plagues the Middle East, Russia, and other oil-producing regions, new reactor technology looks promising, and President Bush is promoting nuclear among the alternatives for electric power. Indeed, opinion polls suggest the public has an increasingly positive attitude towards nuclear power.
It seems history does repeat itself all too often. In the late1990s, a common complaint by utility CEOs was that utility price-to-earnings (P/E) multiples did not take into account whether a com- pany was a pure-play regulated utility, a diversified utility with a merchant subsidiary, or something else. Many say investors at the time just didn’t understand the different business models that were emerging after electric restructuring.