The Most Effective Way

Market prices send investors clear signals to invest in the most efficient means for producing electricity.

Higher electricity prices have drawn sharp attention to the design of organized wholesale electricity markets—particularly to areas where residential customers’ rates will increase because multi-year rate freezes are ending. Some suggest changing the way that markets set wholesale electricity prices, or doing away with competitive markets entirely and returning to government regulation of prices. They say that the design of the markets exaggerates the effects of natural-gas price increases and unfairly rewards generators that use lower-cost fuels.

Don't Mess With Texas

America’s energy competition laboratory prepares to build.

The ERCOT region remains a living example of how to make a successful transition to restructured wholesale and retail markets for electricity. At the same time, the market continues to witness some significant developments. Sights are turning from recovery to the next stage of the power business cycle: The Buildup.

People

(October 2006) Kansas City Power & Light promoted Kevin Bryant to vice president of Energy Solutions. American Electric Power announced a series of executive reassignments as part of the company’s succession planning strategy. Pacific Gas and Electric Co. elected Bill Morrow as president and COO. Bob Drennan, a 23-year Progress Energy veteran, has been named vice president of investor relations. And others...

A National Meltdown

Discordant global-warming solutions may end up burning utilities.

How will utilities in the next 10 years manage a multi-billion-dollar infrastructure buildout, higher interest rates/cost of capital, diminishing free cash flows, state renewable mandates, and political pressures to keep rates or power prices low, all while complying with carbon emissions programs that emphasize higher-cost fuels? Meeting the challenges may depend on whether a national carbon program that regulates carbon emissions is established.

Lies, Damn Lies, and Statistics

How does the DuPont Model—a hybrid of which provides the methodology behind the Fortnightly 40 rankings—actually work? The author shares lessons learned during implementation of the hybrid model this year.

(September 2006) How does the DuPont Model—a hybrid of which provides the methodology behind the Fortnightly 40 rankings—actually work? The author shares lessons learned during implementation of the hybrid model this year.

Letters to the Editor

David Powell, Southeast Lineman Training Center: I enjoyed reading “Baby Boom Blues”. What amazes me is although there is a great need it seems the only people who see the need are the utility companies themselves.

David Sumner, CEO, ARRL: Even the “cloudy” outlook for BPL reported in your article &ldquoA Hard Look at BPL: Utilities Speak Out” is overly optimistic.

The Challenge of Implementing NERC's Cyber Standard

How to develop, implement, and operate a security program.

In May 2, 2006, the NERC board of trustees adopted the Critical Infrastructure Protection Cyber Security Standard. This article provides some answers to questions in the form of security program development, implementation, and operation.

AMI/Demand Response: Getting It Right the First Time

Each DR portfolio will have a different set of AMI needs, based on overall technology infrastructure.

Advanced metering infrastructure (AMI) evaluations will benefit greatly from creating an appropriate DR portfolio as part of the overall solution.

In the Energy Policy Act of 2005 (EPACT), Congress sent a strong message to electric utilities, consumers, and industry regulators that they need to get serious about advanced metering, time-based rates, and demand response (DR).

To underline this point, EPACT states:

AMI/Demand Response: For Real This Time?

Smart metering is coming of age. Is the utility world ready for it?

Some states, including Illinois, Oregon, Pennsylvania, and Texas, have been considering smart-metering questions as part of rate cases and resource-planning discussions. Other states, such as Kentucky, Louisiana, Ohio, and Virginia, have initiated EPACT Section 1252 inquiries separately from other proceedings. The tenor of the discussion also varies from state to state, with high-cost power states generally more attracted to AMI than low-cost states are.

Coal No More: What If?

An analysis of what risks would have to be taken to significantly reduce carbon emissions by using natural gas in the short run.

An analysis of what risks must be taken, in the short run, to significantly reduce carbon emissions with use of natural gas.