Social and political attitudes toward cheap power were a major obstacle to electricity liberalization in Poland; they also may be one in Russia.

The Feb. 1, 2003, edition of Public Utilities Fortnightly contained a pair of articles (Competition Lost, and Superpower Opportunities) about utilities that invested abroad during the 1990s. The pairing of the articles leads to the question of what can be learned from the past to facilitate investments in future opportunities.

New Positions:

Allegheny Energy named David C. Benson its interim executive vice president, assuming the responsibilities of Allegheny Energy Supply President Michael P. Morrell, who will make use of the company's early retirement option program. Benson has been with Allegheny Energy for 25 years.

Cleco Corp. appointed Stephen M. Carter vice president of regulated generation. Carter earlier served as superintendent of Dolet Hills power station.

NRG's bankruptcy is challenging creditors' resolve to back merchants until power prices rebound.

A common complaint in the last few months by would-be buyers of merchant assets has been that all the choice power plants have been pledged as collateral to commercial banks in order to stave off bankruptcy. That's why not many transactions have taken place, merchant asset buyers say, as everything else in the market isn't worth the price being offered.

Market fundamentals are driving NO_X prices higher.

Environmental compliance appears poised to become the biggest single driver of asset value for electric generators during the next five years.

While limits on sulfur dioxide (SO₂) emissions have been achieved with relatively minor impact through the tradeable allowance program, permit systems in the future will become increasingly stringent. The NO_X State Implementation Plan (SIP) Call represents just the first instance of this.

Implementing new credit risk management standards and best practices may require an overhaul of current utility IT systems.

Information overload is a serious risk to the effectiveness of the credit management process, especially as it relates to developing IT systems to implement the recent credit risk standards developed by best practice group, the Committee of Chief Risk Officers (see the CCRO's Credit Risk Management Report, www.ccro.org [Nov. 19, 2002]).

What is risk management?

No, it's not a brainteaser. It's the driving question behind , a new book from authors Shirley S. Savage and Peter R. Savage that offers a risk primer for energy company employees and executives.