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:

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.

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.

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.

Mirror, Mirror

A rash of rate hikes around the country could have utilities facing a public-relations disaster.

Constellation Energy CEO Mayo Shattuck has complained that he and the utility have unfairly been demonized in the public and in the press. In one interview with a Maryland paper, Shattuck showed distress over the verbal abuse his executives had received from angry ratepayers. And who can blame him?

People

(August 2006) Patricia Chadwick, president of Ravengate Partners LLC, has been elected to the board of directors of Wisconsin Energy Corp. Pacific Gas and Electric Co. elected Sanford L. Hartman as vice president and managing director, Law, and Brian K. Cherry as vice president, regulatory relations. Jessie J. Knight Jr. was named to the newly created position of executive vice president of external affairs for Sempra Energy. And others...

Letter to the Editor

Joseph Bowring, PJM Market Monitor: ”Pondering PJM's Energy Price Run-Up” by Howard Spinner of the Virginia State Corporation Commission staff raises the question of whether the observed increase in PJM average system prices in the second half of 2005 was the result of fuel-price increases and increased loads, or the result of market power. The results reported in the Spinner article are incorrect; see PJM Energy Prices—2005: Response to Howard M. Spinner Paper.”

Living on the Edge

Putting natural-gas price volatility into hurricane-season perspective.

The natural-gas and oil price run-up since hurricanes Katrina and Rita has subsided somewhat following a warmer than usual winter, record natural-gas storage levels, and successful conservation instituted by many gas and electric utilities in recent months. However, new sources of supply concern—such as occurred in Europe with accusations of gas-supply withholding between former Cold War adversaries—have rekindled calls for greater diversity of supply across Europe.

A New England Capacity Market That Works

Two authors beg to differ with Goldman Sachs’ Larry Kellerman on what needs mending in the Northeast.

Although much work remains before all its benefits will be realized, the Forward Capacity Market satisfies the criteria for a capacity system that works, while avoiding the need for the centralized planning and control that Larry Kellerman appears to advocate in “Mending Our Broken Capacity Markets.”

Green Options On the Future

Call options can be used as a financing tool for fixed-cost renewable energy technologies.

An unexploited benefit of renewable energy is the predictability of operating costs over the long term. A renewables operator knows today how much it will cost to produce energy decades in the future. This future price certainty has a value that can be transferred to electricity buyers or other market participants. How much value can a renewable-plant operator capture from selling long-term call options, given several future price and volatility scenarios? What will be the cost and benefit to an individual buyer or seller?