Fortnightly Magazine - June 2007

A Primer on the PIM Framework

How enterprise risk management practices impact the Standard & Poor’s rating process.

About a year ago, Standard & Poor’s expanded the methodology used to review and assess the enterprise risk management practices of U.S. energy firms with trading desks. The methodology, known as the PIM framework, focuses on the three aspects of policies, infrastructure, and methodology, and produces a comprehensive evaluation of a firm’s risk management. The importance of each of these aspects in a company’s risk culture, and our opinion of its risk management quality, will depend on that company’s size, complexity, and range of risk.

A Climate Emergency?

Capacity shortages from global warming should be the real cause for alarm.

Suppose the experts are wrong about climate change. Suppose they’ve underestimated the impact of global warming. Of course, to longtime readers of Public Utilities Fortnightly, the idea that a warming climate might force adjustments in utility resource plans is nothing new.

People

(June 2007) The Nuclear Regulatory Commission announced the selection of Darren B. Ash as CIO and deputy executive director for information services. The Westar Energy Inc. board of directors announced that William Moore will succeed CEO James Haines. Energen Corp. shareholders re-elected five members to the diversified energy company’s board of directors. The Electric Power Supply Association announced the addition of Conrad Lass to EPSA’s senior staff as vice president of legislative affairs. And others...

Money Talks, Thermal Plants Walk

Why it pays for utilities to be more efficient.

Working as chairman and chief scientist at the Rocky Mountain Institute, the research institute he cofounded in 1982, Amory Lovins continues to sell his ideas to a more receptive industry, and he doesn’t hesitate to go after counter-arguments with which he disagrees.

Asset Ownership Takes New Shape

The North American electric-power sector remains highly fragmented, with much consolidation potential.

During the last few years, the generating asset-ownership structure in North America has gone through a major change. During one of the most severe bust cycles of the industry, and the gradual recovery of the markets, significant amounts of assets have changed hands.

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