One if by Wholesale, Two if by Retail

Which path leads to the smart grid?

A fierce debate has erupted in the utility policy community, with battle lines drawn within FERC itself. In the effort to improve system efficiency, two competing alternatives stand out: to build the smart grid on large-scale demand response (DR) programs, or to build it around consumer behavior in retail markets.

M&A Uptick

Do regulatory and economic trends favor industry mergers?

Now that some new major transactions have emerged, and financial recovery appears slowly moving forward, utility mergers are beginning to appear likely again. Although regulatory hurdles still impede new transactions, some changes at the federal level are reducing concerns about market power and competition. Plus, changing market conditions and new compliance requirements are strengthening the case for scale economics.

People (October 2010)

Southern Company rearranges executive suites upon Ratcliffe’s retirement; Constellation hires new chief marketing officer; TECO names Ramil CEO; plus executive announcements at Black Hills Corp., Cleco, Tres Amigas, Chesapeake Utilities, Exelon, Vectren, and more.

Letters to the Editor

(October 2010) AWEA’s manager of transmission policy refutes author Robert Blohm’s assertion that renewable power exacerbates America’s growing problems with frequency response.

Dividend Debacle

Investors get caught in partisan crossfire.

Investor-owned utilities get caught in the partisan crossfire, as candidates engage in a national food fight over tax policies.

ITC Holdings: Riding the Wires

When DTE Energy divested its transmission business back in 2003, the future of independent transmission companies (transcos) looked uncertain. A few transcos persevered, however, and this year for the first time the F40 survey includes one of them.

Transactions (September 2010)

In July 2010, ComEd brought $500 million worth of 10-year notes to market; Massey Energy acquired Marmet Dock from Kanawha River Terminals; Beacon Power raised $25 million in equity from Aspire Capital; other transactions involved Plains All-American Pipeline and Black Hills Corp.

Deja vu or New Horizons?

State regulators face mandates without consensus.

New federal and state policy mandates are pulling state regulators in many directions. The patchwork of regulations has created a new level of complexity for utility investment decisions and political risk for utilities and state regulators alike.

Extreme Efficiency

Performance standards are a valid idea—if targets are achievable.

Performance standards are a valid and necessary idea to drive conservation, but only if targets are realistic and achievable. So far, success has been determined by program rationality. A uniform, market-based approach would give retailers flexibility to spur innovation.