Climate risks are entering the calculus for utility investment strategies.
Utilities are eager to invest in new power capacity—in part to build rate base and in part because they recognize the danger of relying too much on a single fuel source. Environmental issues, however, are adding greater complexity to company strategies for achieving fuel diversity.
Incandescent light bulbs create a cogeneration benefit by warming the indoor spaces they illuminate.
Genuine price signals about the underlying cost of consumer energy usage are an important part of energy efficiency. With those signals, consumers can adapt to save high-cost energy, while making better use of available low-cost sources and supplies.
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.”
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?
(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...
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.
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.”
(September 2006) Pacific Gas and Electric Co. elected Bill Harper as vice president of strategic sourcing and operations support. Piedmont Natural Gas hired Judy Z. Mayo as deputy general counsel at Piedmont. ITC Holdings Corp. appointed Bennett Stewart to its board of directors. Cleco Corp. named Jeffrey W. Hall senior vice president, governmental affairs, and chief diversity officer. And others.
Is it really so important to preserve regional differences?
The July 11, 2006, edition of the Wall Street Journal contained an excellent opinion piece which posed the question: “What does ‘energy security’ really mean?” What is so striking about his article is that his analysis easily could describe power industry politics between low-cost states (suppliers) and high-cost states (consumers).
Do you know what your legal exposure is?
Enron has provided lessons for both corporations generally as well as the energy industry specifically. How can energy market participants effectively manage the risks inherent in complying with those regulatory reforms?