FERC’s ROE incentive adder policy sends the wrong signals.
FERC is offering incentive rates to entice transmission investment. But the authors identify serious flaws in emerging policy regarding return on equity (ROE) incentive adders. Determining whether and when ROE adders are appropriate requires a more deliberative approach.
Troubled markets drive defensive tactics.
The credit crisis has split U.S. utility companies into the haves and have-nots. Companies that planned ahead are enjoying the benefits of liquidity, while the rest are struggling to manage their financial risks in a volatile market. Nevertheless, companies across the sector are cutting spending and deferring projects as they weather the storm.
How a move to bring power markets to the Great Plains has uncovered a crisis in grid planning.
They call the United States the “Saudi Arabia of Wind.” That’s due in large part to the huge potential of the Great Plains. But there’s a hole in the metaphor. Wind power development in some parts of the prairie is falling short of expectations.
Unconventional sources brighten the U.S. supply outlook.
The future of natural gas supplies in the United States looks promising due to rising projections of recoverable resources, including unconventional production. A strong supply outlook bodes well for using natural gas as a low-emission transportation fuel.
Even blue-sky goals fall short.
Obama has set high expectations for his administration. But as the president acknowledged in his inaugural address, fulfilling those expectations won’t be easy. For the U.S. power and gas industry, the specific questions are whether Obama really means what he says about energy policy; whether his policy priorities are sufficient to accomplish the goals he’s set; and whether his “Yes we can!” strategy can survive in the real world, with all its practical constraints and party politics, after the “change” buzz subsides.
Why a risk-hedging product for small customers isn’t the gamble you may think.
A hard year puts deregulation to the test.
Deregulation is being tested by a series of crises, from a devastating hurricane to the Wall Street meltdown. Regulators and companies are applying the lessons learned to strengthen the Texas market’s framework.
El Paso Electric (EPE) selected David W. Stevens as CEO. DPL Inc. promoted Frederick J. Boyle to senior vice president, CFO and treasurer of DPL and its principal subsidiary, The Dayton Power and Light Co. Great Plains Energy named Todd Kobayashi v.p., strategy and risk management. Consumers Energy promoted Richard J. Ford to vice president of energy delivery. And others...
Left-coast lawmakers envision a greener America.
As the new U.S. government takes shape, at least one trend seems clear: California is taking over the country. Well, maybe not “taking over,” exactly. But leading.
The market-to-book ratio is a vital sign of a utility’s health.
Like a physician with her stethoscope at the outset of a check-up, astute shareholders and directors should use the level and trend of a utility’s market-to-book ratio (MtB) as one of the first vital signs they monitor and as an ongoing and leading measure of a utility’s strategic health.