CAP

Regulatory Uncertainty: The Ratemaking Challenge Continues

In a joint survey conducted by Navigant Consulting and Public Utilities Fortnightly, utility executives identify the biggest challenge to their business.

A joint survey of utility executives by Navigant Consulting and Public Utilities Fortnightly identifies the biggest challenge regulators face.

State Regulators: Driven By Reliability

Can natural gas supply keep up with demand for power?

Reliability and utility infrastructure development remain regulators’ top concerns. This year’s Regulators Forum spans the different regions of the country to highlight the most pressing issues facing the industry.

Power Measurements

What's causing price volatility, and will it last?

Power Measurement

What's causing price volatility, and will it last?

Coal markets have changed dramatically in the last year, but uncertainty lingers over how permanent the changes will be. After relative stability in the 1990s, coal markets, like other energy commodities, have become increasingly volatile, although high prices should not be confused with increased volatility.

Commission Watch

The industry requires new analytical tools to incorporate the realities of today's higher risk operating and investment environment into the equity allowance process.

Commission Watch

The industry requires new analytical tools to incorporate the realities of today's higher risk operating and investment environment into the equity allowance process.

 

Commission Watch

PJM would dictate grid expansion, even if not needed for reliability, and then push the cost of the upgrades on those who use them the most.


PJM would dictate grid expansion, even if not needed for reliability, and then push the cost of the upgrades on those who use them the most.

Chairman Pat Wood and his Federal Energy Regulatory Commission (FERC) may well have given up on attempts to impose a standard market design (SMD) on the electric utility industry, but that doesn't mean the nation's grid system operators won't try the same thing.

New York Throws a Curve

ISO's new ICAP scheme seen as subsidy for the gen sector.

For evidence that electric restructuring has lost its way, look no further than ICAP — the dubious idea that to guarantee reliability and low prices, regulators should create a market not just for trading the finished commodity, but also for buying and selling ownership rights in the future ability to produce.

Perspective

It is hard tyo foresee abandoning the discounted cash flow method relied upon so heavily for the past couple of decades.


It is hard tyo foresee abandoning the discounted cash flow method relied upon so heavily for the past couple of decades.

In the Feb. 15, 2003, edition of , Jonathan Lesser says that regulators need to rethink the traditional discounted cash flow (DCF) method for finding the cost of capital, or "at the very least, regulators should no longer rely solely on the DCF to set allowed returns."