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BGS Auctions: What Price Is Right?

How to price new load-servicing contracts while incorporating market-risk analysis into such deals.

Why have basic generation service auctions historically been overly competitive given the prevailing market prices at the time? Here are four steps to determine correctly what should the bid price should be.

Building a Better Utility

Many of the obstacles and strategic issues that utilities face today are all too familiar. This time they must be solved with a different business model.

We overbuild, run short, then overbuild again. You'd think we'd learn, because when the forecasts aren't accurate, when overcapacity plagues the industry, companies fail. Can we get the forecasts right? Probably not. But we can plan for forecasts that will be wrong. They always are. And they will be until the system is redesigned to let prices clear the market.

Revenge of the ’70s

A guide to the galaxy of low growth, high interest rates, and the dark side of the Force.

Many executives are hoping to avoid a repeat of the 1970s, when first hit the big screen, and when inflation, nuclear cost overruns, and diminishing returns came calling in an economic climate that today's markets threaten to emulate.

Fulfilling the Value Proposition

The Next M&A Wave: If mergers are once again a potential strategy for accomplishing growth objectives, the previous round of transactions offer several lessons.

The industry stands at an inflection point regarding consolidation. But this time, it is less likely to retreat from more and larger combinations. What’s driving renewed interest in mergers and acquisitions?

Utilities and BPL: Betting Against the Odds

Why broadband over power line (BPL) can't stand alone as a high-speed Internet offering.

Broadband over power line (BPL) wants to compete with cable modems and DSL for high-speed Internet customers, but BPL providers can make the technology more attractive by bundling the service with other product offerings.

Distributed Generation: Who Benefits?

<font color="red">Distributed Generation</font>

Distributed Generation

In the first of three articles, experts at Oak Ridge National Laboratory examine the technical obstacles, deployment, and economic issues surrounding distributed generation.

The existing electric power delivery system is a critical part of this country's economic and societal infrastructure, and proposals to increase the role of distributed energy resources (DER) within this system are welcomed by few in the utility industry.

The Future of Electric Competition: Concentrated Power

An analysis of competitive power markets finds that oligopolies are the end game for liberalized power markets.

The British wholesale power market is about to enter a new phase. Having enjoyed a long period of surplus capacity, the combination of the forced retirement of some nuclear plant and continued demand growth is likely to lead to a capacity shortage within the next three to four years, and it is by no means clear whether the market, as it currently operates, will be able to maintain secure supplies.

Corporate Risk: What Does Management Really Know?

A short list of questions that every board member and senior manager should be able to answer.

“We pursue a disciplined approach to risk management" says the CEO of a major utility during the company's earnings call with analysts and investors. In this era of increased scrutiny over corporate governance, how can senior management and the board be certain that this statement is accurate, and where does the discipline begin?

Betting on Broadband

Are consumer broadband over powerline (BPL) services enough to make the business case for utilities?

After years of development, technology to deliver high-speed data over the existing electric power delivery network has emerged in the marketplace. In some sections of Cincinnati and Manassas, Va., consumers now have an alternative to DSL and cable for broadband Internet access. It's real and it works.

Merchant Power: Ratepayers Back At Risk

A review of power plant deals in 2004 shows that utilities are buying.

Whether evolution or devolution, the merchant deals done to date show movement to a familiar structure; ratepayers are back at risk. While ratepayers have benefitted from merchant plants, they also paid since competition began with PURPA in 1978, and many of the acquisitions put them at risk for future changes in power values and fuel costs.