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Utilities are absorbing distressed IPPs, and raising alarm bells in the process.

In 2003, just over 1.4 GW of unregulated generating capacity was converted into rate-based assets. At least another 5.6 GW will be converted soon. What supply procurement practices are appropriate in today’s power market?
Byline: 

Michael T. Burr

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Electric Reliability: The Merger Solution

Can economies of scale make the industry more stable?

Utility mergers create exceptional efficiencies, yielding average cost savings of approximately 5 to 10 percent of the combined company’s non-fuel operating expenses. These substantial untapped cost efficiencies could be harvested through more merger-friendly state regulatory policies that would enable utilities to retain these merger cost savings so long as a significant portion was channeled toward infrastructure investment.
Byline: 

George W. Bilicic And Ian C. Connor

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Total Recall: Will Competition Be Back?

California anticipates changes in energy policy under its new governor.

The Schwarzenegger administration’s detailed implementation plan is expected by the spring of 2004. Schwarzenegger is committed to restoring confidence in government and improving the business climate, and at the same time taking steps to increase and diversify California’s energy supply and improve the environment.
Byline: 

Gordon P. Erspamer

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Perspective: MISO, Markets, and Common Sense

Wisconsinites don't fear 'Day 2.' But let's get the grid rights right.

The cost of rushing into poorly designed LMP-based energy markets may far exceed any purported cost increases attributable to any future delayed start-up date for certain portions of the MISO region.
Byline: 

Robert M. Garvin

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People

People for March 2004.

Positions filled at Allegheny Energy, Constellation NewEnergy, Xcel Energy, and others.
Byline: 

PUF

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Frontlines: Still More Blackouts?

Do-nothing regulators scare off investment, raising prospects for yet another large-scale power failure.

Let's hope the industry spends the money before Mother Nature throws her next pop quiz.
Byline: 

Richard Stavros

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Payable on Demand

Utilities are finding strategic benefits in demand-based metering technologies.

New metering dramatically expands utilities’ data-handling requirements. Stepping up internal facilities for analyzing this data lets utilities experiment with different price signals and incentives. By gauging the effect on overall load and on grid constraints, utilities can maximize the return on existing transmission assets and reduce the need for new investment. Just as important, utilities can use the new data to develop regulated and competitive products for specific customer niches. This is more than a profit opportunity. It is also part of a utility’s public obligation.
Byline: 

Guerry Waters

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Plants for Sale: Pricing the New Wave

Financial players and load-serving utilities are looking for power asset deals.

Approximately 60 generation asset sales have been announced in the past two years, and future transaction activity is likely to accelerate. Who are the players, and where might the available plants be located?
Byline: 

David Haarmeyer, Mark Griffith, and Grant Thain

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European Infrastructure: Billions Needed in Investment

Electricity demand in parts of Europe is on the rise.

A legal and institutional regulatory framework for the EU should spur significant infrastructure investment in the region—if 15 countries can find a way to harmonize their regulatory regimes.
Byline: 

Branko Terzic and Thomas J. Flaherty

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Europe Rewired: A Giant Awakens

EU nations are taking slow steps toward an integrated energy market, but they are many paces ahead of U.S. efforts.

The emerging EU energy market faces barriers to competition and regional integration, exacerbated by the exodus of American companies from the market and the heightened trend toward oligopoly control. Nevertheless, European integration is moving at a faster pace than American initiatives.
Byline: 

Arthur J. O'Donnell

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