Fortnightly Magazine - October 2012

Dividend Double-Take

What happens when the Bush tax cuts expire?

Congress again is embroiled in another hyper-partisan food fight that threatens to blow up into a fiscal crisis. And once again dividend-paying companies like utilities are caught in the crossfire.

Views from the Bond Side

How fixed income investors view the utility sector.

Bond investors are keen for signs of a legitimate recovery, and will be looking to move into holdco bonds.

People (October 2012)

NU names new president and COO at Connecticut Light and Power; Jim Stanley leaves Duke to become NIPSCO CEO; plus executive changes at FirstEnergy, ConEdison, Southwest Power Pool, Duke-Progress Energy, EEI, and others.

What Price, GHGs?

Calculating the implied value of CO2 abatement in green energy policies.

Renewable portfolio standards and other green energy rules put a price on environmental benefits. Calculating this price can help clarify the social value of GHG reductions.

A Pricey Peninsula

Michigan chafes over regional grid planning, providing a policy lesson for the feds.

High prices have turned Michigan against regional planning -- a possible foretaste of what to expect under FERC Order 1000.

Last Call

Utilities are enjoying some of the best financing terms anybody’s ever seen. Is the party winding down?

Conditions are ideal for utility financing—but not forever. Although interest rates remain low, policy changes weigh on capital structures.

Efficiency Beyond the Low Fruit

Continuous improvement requires changing practices and cultural norms.

As efficiency programs mature, utilities and regulators will be challenged to keep producing demand-side resources. A systems-oriented approach can yield cost-effective results.

A Virtuous Cycle

How customer satisfaction drives returns on equity for regulated electric utilities.

Data and experience show that serving customers well translates into better rate case outcomes. Conversely, poor performance starts a downward slide. J.D. Power and Associates research shows the correlation between customer service and financial returns.

Vendor Neutral

Constellation completes 16.1 MW PV project in Maryland; Ikea commissions 31st solar project, reaching 38 MW installed; IPL and MidAmerican install $545 million scrubber in Iowa; DTE partners with Enbridge and Spectra on pipeline for Utica shale gas; plus contracts and announcements from Dominion, Sempra, Southern Company, AEP, EPRI, Itron, Landis+Gyr, Opower and others.

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