Become a PUF Member Organization

Fortnightly Magazine - July 2006

Baby Boom Blues

A series of articles, reviews, and strategies for the anticipated utility workforce shortage.

Almost 40 percent of utility workers will become eligible for retirement in the next five years. Assuming only nominal growth, the industry by 2010 will need to hire 10,000 new skilled workers each year. Exacerbating this situation is a host of social and market factors that constrain the supply of skilled workers and make the workforce gap especially challenging for electric and gas utilities.

Byline: 

Michael T. Burr

Read Entire Article

HR Roundtable: Bridging the Talent Gap

Recruiters and HR consultants see utilities taking an increasingly comprehensive approach to addressing tomorrow’s personnel challenges.

New talent is scarce. And keeping the old talent takes imagination. How are utilities handling changes in personnel markets? We speak with several leading HR consultants to get their views.

Byline: 

Michael T. Burr

Read Entire Article

Defining the New Policy Conflicts

Failing to address and adapt to the new ratemaking realities could result in increased costs for the economy.

The approaching 100th anniversary of regulation by public utility commissions in the United States calls for some reflection. How much have things changed, and how much have they stayed the same?

Byline: 

Mark A. Jamison and Paul Sotkiewicz

Read Entire Article

A Brief History of Rate Base: Necessary Foundation or Regulatory Misfit?

Regulators today must define earnings for energy retailers virtually bereft of fixed assets.

Applying the traditional rate-base concept to the new hybrid companies is where the gap between the old and the new regulatory paradigms resembles a deep schism. The current shifts in regulation should cause regulators to revisit and reconsider concepts that once reigned supreme in ratemaking.

Byline: 

Charles J. Cicchetti and Colin M. Long

Read Entire Article

Watching and Waiting: A Blueprint for Transformer Maintenance

How online monitoring can prevent costly failures.

The march of technology, the urgent call for greater grid investment, and a painful recent past have caught up with the utilities industry. One key area of preventative maintenance for utilities is the transformer, many of which are decades old. Representing approximately $200 billion in investment, these units—which currently number approximately 100,000—can’t be replaced overnight.

Byline: 

Christian Hamaker

Read Entire Article

Diamonds in the Rough

Retaining mid-career personnel will be important to a utility’s success.

With upward of 50 percent of the utility industry’s workforce approaching retirement, the industry’s leadership, at all levels, must come to grips with this enormous challenge. This looming demographic challenge is not simply a human-resources problem. For most of the industry, it poses a very real threat to the bottom line and touches upon the fundamental ability of the company to pursue its mission. The path to survival will require non-traditional thinking around all the people levers—staffing, work planning, compensation, work processes, performance management, development, job and organization design, and, most important, leadership.

Byline: 

Michael Brown and Sasha Lazor

Read Entire Article

Gravy Train

Utilities must trim the fat from excessive stock options, stock grants and executive pay.

This month’s cover story focuses on how utilities intend to find the talent they’ll need over the next few years to replace all those retiring baby boomers. And part of that puzzle naturally involves executive pay: how to attract the best and brightest without going overboard on rewards for performance.

Byline: 

Richard Stavros, Executive Editor

Read Entire Article

People

(July 2006) The New York Independent System Operator named Rana Mukerji to serve as vice president, market structures. CMS Energy elected Jon E. Barfield as an interim appointee to the company's board of directors and also re-elected 10 incumbents. Pepco Holdings Inc. elected Frank O. Heintz and Lester P. Silverman to the board of directors. TXU Corp. elected the following directors: E. Gail de Planque, Leldon E. Echols, Kerney Laday, Jack E. Little, Gerardo I. Lopez, J.E. Oesterreicher, Michael W. Ranger, Leonard H. Roberts, Glenn F. Tilton, and C. John Wilder. And others...

Read Entire Article

America's Resource Mix

Wind gains, but won’t soon alter the fuel mix.

Some power markets may be seeing possible signs of recovery. Spark spreads appear to have bottomed out, and reserve margins have begun to fall in some markets. As Figure 1 shows, recovery is uneven, with many regions still experiencing excess supply and a few regions with peak reserves under 10 percent.

Byline: 

Gary L. Hunt and George Given

Read Entire Article

Transforming Production Tax Credits

Three reasons to make them a permanent part of U.S. energy policy.

For the past decade, the renewable energy industry and various branches of the federal government have engaged in an ungainly, enormously unproductive two-step on production tax credits (PTC) for renewable energy projects, and for wind projects in particular. The PTC can be transformed into a keystone of an effective energy environmental policy. However, to achieve this transformation, the misperceptions must be challenged.

Byline: 

George Sterzinger

Read Entire Article
V