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Fortnightly Magazine - September 2006

Merchant Transmission Redux

Financial transmission rights and regulated returns have not induced needed construction. Presenting an alternative model.

By almost any measure, the nation is running short of transmission, and the existing volume of investment cannot long continue to reliably accommodate retail-load growth and larger wholesale volumes. Factors like environmental opposition also have caused declines and delays in transmission investment, but it seems clear that financial transmission rights and regulated returns have not sufficed to induce the necessary construction. The authors propose a new model to reward investors who lower congestion costs.

Byline: 

J. Jolly Hayden and Robert J. Michaels

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Coal No More: What If?

An analysis of what risks would have to be taken to significantly reduce carbon emissions by using natural gas in the short run.

An analysis of what risks must be taken, in the short run, to significantly reduce carbon emissions with use of natural gas.

Byline: 

By Henry R. Linden

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AMI/Demand Response: For Real This Time?

Smart metering is coming of age. Is the utility world ready for it?

Some states, including Illinois, Oregon, Pennsylvania, and Texas, have been considering smart-metering questions as part of rate cases and resource-planning discussions. Other states, such as Kentucky, Louisiana, Ohio, and Virginia, have initiated EPACT Section 1252 inquiries separately from other proceedings. The tenor of the discussion also varies from state to state, with high-cost power states generally more attracted to AMI than low-cost states are.

Byline: 

Michael T. Burr

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AMI/Demand Response: Getting It Right the First Time

Each DR portfolio will have a different set of AMI needs, based on overall technology infrastructure.

Advanced metering infrastructure (AMI) evaluations will benefit greatly from creating an appropriate DR portfolio as part of the overall solution.

In the Energy Policy Act of 2005 (EPACT), Congress sent a strong message to electric utilities, consumers, and industry regulators that they need to get serious about advanced metering, time-based rates, and demand response (DR).

To underline this point, EPACT states:

Byline: 

Ross Malme, Dr. Daniel Violette, Rachel Freeman, and Pete Scarpelli

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The Challenge of Implementing NERC's Cyber Standard

How to develop, implement, and operate a security program.

In May 2, 2006, the NERC board of trustees adopted the Critical Infrastructure Protection Cyber Security Standard. This article provides some answers to questions in the form of security program development, implementation, and operation.

Byline: 

Ron Blume, P.E.

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Letters to the Editor

David Powell, Southeast Lineman Training Center: I enjoyed reading “Baby Boom Blues”. What amazes me is although there is a great need it seems the only people who see the need are the utility companies themselves.

David Sumner, CEO, ARRL: Even the “cloudy” outlook for BPL reported in your article &ldquoA Hard Look at BPL: Utilities Speak Out” is overly optimistic.

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Lies, Damn Lies, and Statistics

How does the DuPont Model—a hybrid of which provides the methodology behind the Fortnightly 40 rankings—actually work? The author shares lessons learned during implementation of the hybrid model this year.

(September 2006) How does the DuPont Model—a hybrid of which provides the methodology behind the Fortnightly 40 rankings—actually work? The author shares lessons learned during implementation of the hybrid model this year.

Byline: 

Jean Reaves Rollins

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The Geopolitics of the Grid

Is it really so important to preserve regional differences?

The July 11, 2006, edition of the Wall Street Journal contained an excellent opinion piece which posed the question: “What does ‘energy security’ really mean?” What is so striking about his article is that his analysis easily could describe power industry politics between low-cost states (suppliers) and high-cost states (consumers).

Byline: 

Richard Stavros, Executive Editor

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People

(September 2006) Pacific Gas and Electric Co. elected Bill Harper as vice president of strategic sourcing and operations support. Piedmont Natural Gas hired Judy Z. Mayo as deputy general counsel at Piedmont. ITC Holdings Corp. appointed Bennett Stewart to its board of directors. Cleco Corp. named Jeffrey W. Hall senior vice president, governmental affairs, and chief diversity officer. And others.

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The Ontario Coal Conundrum

Tough plant-retirement decisions being made in Canada to reduce its carbon footprint contrasts with America’s embrace of coal-based generation.

There is a certain irony in Ontario’s decision to phase out its coal-fired generation at a time when the demand for new coal-fired plants is growing in the rest of North America. Global Energy’s analysis of demand for coal for power generation suggests that growth in demand for coal is likely to continue and even challenge coal producers to step up their productive capacity and deliverability to meet that demand.

Byline: 

Gary L. Hunt and Mark Turner

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