Building upon last month’s installment, more is revealed on how, after 10 years of incentive regulation, reliability has declined in Ontario.

The Waxman-Markey bill proposes a federal renewable electricity standard. This standard, combined with state mandates, raises the risk of forest land shortages and higher prices for food and feedstocks.

An entirely new and better approach to measuring risk and compliance allows companies actually to measure this kind of risk—that is, to measure the degrees of compliance regarding actual field practices versus written standards and procedures.

Congress hasn’t amended the Federal Power Act in any way that would change the status quo, and a bright line still separates the distribution business from the federally regulated bulk-power system. Pending legislation, however, might change that.

Secrecy is the norm in electric power bidding. This lack of transparency impedes an efficient electricity market. Bringing daylight to power markets would reduce prices and save consumers money.

Who will oversee the industry’s cyber standards? Effective security calls for a single organization to set standards that will protect the smart grid. The industry is struggling to reach consensus over authority, scope and funding for its new security apparatus.

As utilities announce new smart-grid programs, they need a strategic method for quantifying benefits. Analytical models generate baseline benefit estimates and reveal big-picture trends. Decision makers need the best resources available to mitigate risks in choosing a smart-grid strategy.

When Congress repealed the Holding Company Act, it gave states greater authority to regulate utilities. New Jersey picked up the baton and enacted rules to protect ratepayers.

After 10 years of incentive regulation, reliability has declined in Ontario. Regulators failed to enforce service-quality standards, and consumers are suffering as a result.

Given this dynamic state of evolution, it’s not surprising that next-generation technologies are undergoing their own difficult transitions. This transition is exemplified by four high-tech projects being executed by four electric utilities: Duke Energy, American Electric Power, Consolidated Edison and San Diego Gas & Electric. Their projects address different parts of the power-supply chain, and they’re taking different paths to secure financing and regulatory acceptance.