Companies should adopt a far more robust metric.
Market risk remains one of the most significant issues for gas and power merchants. The SEC requires disclosure of market risks in a company’s annual filings. However, the allowable metrics fail to communicate the type of information an investor actually can use to gain an understanding of the market risk embedded in a company’s business.
As rate disallowances become more commonplace and capital requirements expand, infrastructure development will come with a higher price tag.
As the industry’s regulatory risks and capital requirements expand, financing will come with a higher price tag—and another cost pressure in the ratemaking process.
Exclusive interviews with the CEOs of five regional transmission systems.
Exclusive interviews with CEOs at five regional independent transmission system operators: Phil Harris, at PJM; Gordon van Welie, at ISO New England; Yakout Monsour, at the California ISO; Graham Edwards, at MISO; and Mark Lynch, at the New York ISO.
Robert Garvin, MAJ, TC, 3RD Corps Support Command: Serving here and seeing how poor the people of Iraq are after 30 years of a dictatorship is truly life changing. You would not believe the electricity challenges they face here. In a country of over 25 million people, Iraq has only about 5,000 MW of electricity at any given time.
Daniel Simon decided to investigate how much the extra heat of incandescent light bulbs over CFLs might cost a customer in air-conditioning cooling costs, compared to an analysis in “Squeezing BTUs From Light Bulbs.”
In search of the Holy Grail of utility risk management.
The search is on for the Holy Grail of risk management. Utilities are managing new risks, as more sophisticated systems and services become available.
Stage-by-stage advice from an M&A veteran.
Company leaders should expect to go through at least one company merger. If you’re in the energy industry, it’s time to begin pre-deal initiatives.
Significant value waits to be unlocked through consolidation, but conventional approaches have been inadequate.
Can consolidation create sustainable long-term value, or will it prove seductive but, ultimately, disappointing to shareholders, employees, customers, and management alike?
How to maintain continuous power supply while measuring for weak spots.
Failures in medium-voltage power cables and their components cause a large proportion of annual power service interruptions, especially in high-density urban areas. Locating and repairing weak areas in cables at an early stage can improve the reliability of the energy supply considerably. Partial discharge testing is a proven condition assessment/test methodology.
Why competitive markets are scaring regulators.
If the underlying wholesale electricity markets from which supplies are procured are competitive, then the remaining concerns regarding price levels and volatility can be addressed through regulatory policies.
Some recent utility rate proceedings cast doubt on new ROE models and “risk adders.”
(November 2006) Our annual return on equity (ROE) survey broadly shows a continuing decline in the level of debate over issues specific to restructuring of the electric market. It also reveals a subtle shift back to investor requirements and overall business risks faced by regulated companies.