Solution in Search of a Problem
Securitization fails the test for financing environmental capex.
Utilities seeking financing for environmental upgrades should look to the markets for debt and equity, rather than trying to securitize those costs.
People (December 2012)
Tennessee Valley Authority named William D. Johnson president and CEO. Northeast Utilities appointed James W. Hunt as v.p. of regulatory affairs and community relations. Pepco Holdings Inc. promoted Donna J. Kinzel to v.p., treasurer and chief risk officer, Kevin M. McGowan to v.p., regulatory affairs, and O. Ray Bourland to v.p., public policy. And others...
Maximum Burden
The electricity price increases from the proposed EPA Utility MACT will act as a regressive tax on the elderly.
Although EPA claims its tough new clean air regulations will improve public health, in fact they’ll measurably degrade the health of Florida seniors.
Perfect Superstorm
Could carbon taxes emerge in the election aftermath?
Since Obama won reelection, we must ask whether we’d rather have EPA cracking down on carbon emissions, or whether a legislated framework would be better for everyone.
Dominion contracts Alstom for Brunswick HRSGs
Submitted by aburr on Thu, 2012-11-29 21:03Alstom will provide three heat recovery steam generators (HRSG) for Dominion Virginia Power’s new 1,300-MW Brunswick County power station. Alstom says the units will be the largest HRSGs it has supplied for the North America market. Each unit will be coupled with a Mitsubishi MHI501G gas turbine. Alstom contracted to Fluor to lead project engineering, procurement, construction, and commissioning. Construction is expected to begin after Dominion receives approval from the Virginia State Corporation Commission.
SCE signs solar PPAs
Submitted by aburr on Thu, 2012-11-29 20:59Lincoln Renewable Energy (LRE) signed 20-year power sales agreements with Southern California Edison (SCE) to deliver electricity from the Marathon (25 MW DC) and Agincourt (12.5 MW DC) solar power plants that LRE is developing in San Bernardino County, Calif., with WDG Capital Partners. Construction is expected to begin in 2013.
Juhl to buy 260-MW portfolio
Submitted by mburr on Thu, 2012-11-29 17:05Juhl Wind and 8030 Companies formed a joint venture to acquire existing wind farms and additional generating assets in the United States and Canada. Operating under the Juhl Wind name, the partnership expects to buy 260 MW of older wind farms over three years. The company might purchase projectstotaling 60 MW of capacity in 2013 and 100 MW in two subsequent years.
Telecom Transformation
Submitted by mburr on Wed, 2012-11-28 10:42The story of SureWest Communications demonstrates how to survive and thrive in the transition from old-guard utility to new-market competitor.
In the popular reality TV show Survivor, participants go through a series of contests, knowing that only a handful of winners will ultimately be allowed to stay on the island where the competitions occur. In the late ’90s, SureWest Communications – originally known as the Roseville Telephone Co. – realized that it would have to play in its own version of Survivor to remain viable in the telecommunications business.
How Much is Enough?
Utilities face rate pressure as financing costs hit rock bottom.
(November 2012) Fortnightly’s annual rate case survey is designed to give readers a look at rates of return on equity (ROE) awarded in state-level retail base rate proceedings for electric and natural gas utility companies. An examination of the reasoning and commentary contained in these orders provides a glimpse into economic factors considered by regulators as they seek to balance the interests of investors and consumers when authorizing utility ROEs.