RTO Tango

PJM and MISO ran from the altar once before. Now there’s talk of a shotgun wedding.

Utilities in the Midwest ISO want greater access to sell into PJM’s lucrative market. But that might require a virtual merger of the two RTOs — a move rejected seven years ago as too costly, and perhaps still impractical today.

Hedging or Betting?

Lacking regulatory oversight, financial hedges turn into risky speculation.

Many utilities engage in hedging to protect customers from price spikes. But unless regulators are involved in crafting and monitoring these programs, they can turn into speculative ventures that put ratepayers at risk — for the benefit of shareholders.

Transactions (September 2012)

Duke and Progress complete their merger; NRG agrees to acquire GenOn; Algonquin acquires National Grid's New Hampshire distribution business, and acquires an interest in Gamesa's Sandy Ridge wind project; plus other equity and debt transactions, totaling more than $34 billion.

People (September 2012)

James Rogers grabs CEO position at Duke-Progress; FirstEnergy promotes executives; JEA names Belechak CEO; ConEdison Solutions hires sales execs; Atlantic Power names new CFO; plus executive changes at Copano Energy, DTE, Entergy, and others.

Mitt Romney and You

Bold plan for independence, or more partisan overreach?

The Republican nominee’s energy plan doesn’t say much about electricity or natural gas. But what it does say should sound familiar to anyone who’s followed energy policy for more than four years.

World Energy Engineering Congress (WEEC)

AEE is very pleased to celebrate the 35th anniversary of the WORLD ENERGY ENGINEERING CONGRESS (WEEC) at Atlanta's Georgia World Congress Center. The WEEC is well-recognized as the most important energy event of national and international scope for end users and energy professionals in all areas of the energy field. The WEEC features a large, multi-track conference agenda, a full line-up of seminars on a variety of current topics, and a comprehensive exposition of the market's most promising new technologies.

Efficient Frontier: A Brief Overview

The efficient frontier is a portfolio analysis concept designed to assess risk vs. return for an investment portfolio. 

The efficient frontier is a portfolio analysis concept designed to assess risk vs. return for an investment portfolio. While the financial projections of individual assets are key to the analysis, the end result is critical to successful structuring of the portfolio as a whole. Key to the efficient frontier is that it represents the highest level of a portfolio's return for any given level of risk. It can be applied to physical assets, as well as financial instruments—simultaneously. Figure 1 displays a typical efficient frontier chart.

Energy Technology Risk: Managing Hyper Gas Markets

Energy Trading & Risk Management: Gas price volatility has increased. Relying on antiquated scheduling systems is a recipe for disaster.

Given energy markets’ newfound volatility and the range of exposures that global energy firms must deal with, the reactive, reporting-oriented nature of transaction management practices is in need of serious revision. A new scheduling module can add tremendous strength and value to a company, primarily in the areas of gas logistics and risk management.

CFOs Speak Out: Playing LNG for All It's Worth

Neal E. Schmale, Executive VP and CFO, Sempra Energy

Neal E. Schmale, Executive VP and CFO, Sempra Energy: "Make sure you manage the risk. ... We're very careful in that area. ... We're not building the LNG plants until we have the output contracted for."