Economic uncertainties raise doubts about utility returns.
(November 2008) Economic uncertainties are raising doubts over utility returns. Will regulators feel the need to consider broader economic effects when engaging in ratemaking? While reporting on this year’s rate cases, the author provides insight on what to expect as stock prices fall.
Prices between $50 and $80 a ton will trigger major market responses.
Whether in the form of a carbon tax or cap-and-trade regime, climate-change policy is coming and will have a profound effect on electric suppliers and consumers. EPRI studied the effects of high carbon dioxide prices on nine diverse Western generation companies and provides insight into the expected major market responses.
Adaptive companies stand the greatest chance for success.
IBM compiled a comprehensive report, The Enterprise of the Future, which describes traits that the leading companies across all industries will share. Key industries—including utilities—also were evaluated individually to see how these traits might emerge as industries reshape and evolve in the face of customer demands, environmental pressures, global integration, workforce changes, and other challenges.
(November 2008) Atmos Energy promoted Kim R. Cocklin to the new position of president and COO. Exelon Corp. named Christopher M. Crane president and COO. Public Service Enterprise Group elected Thomas P. Joyce as president and chief nuclear officer of PSEG Nuclear. Northeast Utilities (NU) announced new leadership for Yankee Gas Services Co. and Western Mass Electric Co. And others...
Congress pours tax benefits into efficiency and renewables.
Of the many provisions in the bailout bill, few of them actually establish new federal policy. Instead, most just continue existing provisions that already were set to expire, and probably would have been enacted in some form—if not this session, then next session.
(October 2008)
Intelligent networks support better decision making.
Sophocles once said, “Quick decisions are unsafe decisions.” Apparently Sophocles did not work in the utility industry. Utilities must make quick decisions every day to maintain a safe and reliable grid. As they have learned, the key to a quick and safe decision is making a well-informed decision. Yet utilities face challenges in providing enough information for their employees and automated systems to make these types of decisions.
Understanding the value of pumped storage.
Pumped-storage technology allows utilities to defer the time value of energy, but project developers have struggled to make their economics work. Increased demand for ancillary services and standby capacity might make pumped storage more viable.
Increasing risks call for a new generation of leaders.
Can new nuclear power plants get approved? Will wind generators get production tax credits? Will West Coast companies be allowed to re-permit their hydro plants? Will cap-and-trade legislation endanger the coal industry? And who will pay for the transmission of renewable energy? These critical questions still remain unanswered, but utility companies must forge a business strategy through the murk.
Consumers await a revolutionary interface.
Consumers await the revolutionary interface that will allow them to control their energy consumption. Besides maximizing efficiency in the home, these units will allow more
price and product competition. But disincentives to innovation are making for slow progress.