Join the leading utility innovators in Washington, D.C. October 6-8

Credit Risk Exposure

Will traders finally wake up to the danger?

The urgency passed with the heat wave. During the California crisis and defaults of 2001, credit risk rose to prominence again, only to be forgotten after the California markets cooled off.
Byline: 

Brett Humphreys and David Shimko

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Making Markets Work: How ISO Rules Still Cause Problems

How obscured spot prices, unhedgeable basis differentials, unreliable and financially insecure clearing practices inhibit market liquidity.

To date there has been little clarity as to how the physical and financial markets would work together to eliminate the need for continued price regulation, as FERC has proposed.
Byline: 

Becky Kilbourne and Robert Maxant

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Gas Marketers: Oblivious to All the Fuss

New mega-marketers, niche players emphasize opportunity.

Even when the calendar flipped to 2001 and much of the energy industry was swept into the turmoil surrounding the California electric industry restructuring fiasco, gas marketers continued to thrive in the low-supply, high-demand environment.
Byline: 

Mark Hand

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Energy Trading & Marketing: The Evolution of the Deal

Energy traders and risk managers reengineered their business dealings to manage against unexpected political and financial risks posed by California and Enron in 2001.

The rules of energy market survival changed forever in 2001. California and Enron were both humbled by gyrating prices and blackouts in the Golden State, and financial misadventure dethroned the once-crowned king of energy trading. These twin events sent shockwaves through the very foundation of the energy trading and risk management establishment.
Byline: 

Richard Stavros

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Off Peak

Dynegy is hungry for your attention.<b> </b>

Off Peak

December 2001

Please Pass the Potatoes

 

Dynegy is hungry for your attention.

Dynegy's Chuck Watson never had much of an appetite for seeing his company's name in lights.

Byline: 
William Mahoney
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Perspective

When we build transmission and spread the costs, we lose the market signal of the real cost of power.

Byline: 
William W. Hogan
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Frontlines

Energy companies' best-laid plans in 2001 were put on hold, after circumstance and fate stepped in.

Frontlines

The Year of Living Dangerously

Byline: 
Richard Stavros
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Return on Equity: How Regulators Doled Out The Dollars

Results of the annual Survey of Energy Utility Rate Proceedings.

(December, 2001) The results of our annual survey of authorized rates of return on common equity for state-regulated energy utilities show a continued reliance on traditional cost-of-service ratemaking in many states. At the same time the results also show that rate case filings do not dominate the field of economic regulation the way they might have in times of higher rates of inflation and prior to the advent of price cap regulation and market restructuring programs.

Byline: 

Phillip S. Cross

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