Become a PUF Member Organization

Congress

Northwest Passage: BPA's Changing Role

The treacherous journey toward a more efficient and transparent Northwest power market may be nearing its conclusion.

The treacherous journey toward a more efficient and transparent Northwest power market may be nearing its conclusion, as increased funding, more generating capacity, and a burgeoning RTO paint a brighter picture for Bonneville Power Administration.
Byline: 

Michael T. Burr

Read Entire Article

Western Power Markets: Ready for A Wild Ride

IOUs take action, but other overriding forces will affect prices in the near term.

The new capacity brought on line in 2003 and 2004 likely will not drive down market prices but may well provide a measure of reliability to the market, possibly counteracting some of the usual price volatility seen in low hydro years. This is good news for the wholesale power business, and it signals that the industry is beginning to claw its way back from the near-death experience of the past few years.
Byline: 

Gary L. Hunt and Jon Ecker

Read Entire Article

Lost in Translation

Critics say FERC's filed rate doctrine is wrong for the times.

It’s quite remarkable how the Federal Energy Regulatory Commission (FERC) has been able to pound a square peg into a round hole. With not much more than a wink and a smile, FERC has taken a depression-era law meant for monopolies — the Federal Power Act — and has made it serve double duty as a foundation for competitive power markets. Yet FERC’s reinterpretation, for all its good intentions, may prove inadequate in the long run to define and support full-fledged energy markets.
Byline: 

Richard Stavros

Read Entire Article

Consolidating Co-ops

Like it or not, changes are coming for electric cooperatives. Fewer and bigger might be the inevitable result.

Most electric co-ops remain small, local entities. But that historic strength may be keeping them from fulfilling their primary mission—to provide reliable electricity for the lowest possible cost.
Byline: 

Michael T. Burr

Read Entire Article

Boardroom Showdown

Investors are revolting against poor corporate governance, demanding tighter controls that will boost earnings and stock price.

Does good governance lead to superior financial performance? Some large institutional shareholders think so, and they’re pushing for changes. Will your company be affected?
Byline: 

Kevin Genieser

Read Entire Article

LNG: FERC Asserts Control

CPUC questioned historic oversight authority.

The Sound Energy Solutions declaratory order clarified an important jurisdictional issue at a time when the United States is facing dwindling supplies of natural gas from traditional sources. While the order may ultimately be subject to judicial review, expeditious review and confirmation by the courts of the declaratory order may facilitate the development of new infrastructure and the expansion of existing LNG terminals.
Byline: 

Julia R. Richardson and John H. Burnes, Jr.

Read Entire Article

Future Shock

The U.S. faces a near doubling of population this century. Will there be enough power for the people?

In the early 20th century, a mere 247,000 out of a potential 5 million customers had electricity, according to the National Academy of Engineers. Today, the investor-owned utility industry serves almost half of the 293 million who live in the United States. The average number of electric utility customers has run as high as 135 million, according to Energy Velocity. The industry has come a long way. But looking to the future, one sees clouds beginning to form. The answers to the questions become more difficult. The limitations and the obstacles increase. As we see a linear increase in demand, the difficulty of meeting that demand grows exponentially.
Byline: 

Richard Stavros

Read Entire Article

FERC's GulfTerra Orders: Changes in the Pipeline

A new FERC decision veers away from congressional intent not to burden intrastate pipelines with interstate policies.

Two recent orders in a GulfTerra Texas Pipeline LP rate case make new precedent for Natural Gas Policy Act intrastate pipelines providing interstate transportation.
Byline: 

J. Michel Marcoux

Read Entire Article

Business & Money: Bringing Back The Greenbacks

A spate of proposed U.S. tax rule changes soon may open a window of opportunity for certain utilities.

The proposed Homeland Investment Act on Repatriation may soon open a window of opportunity for U.S. companies with unrepatriated foreign earnings. If passed, it potentially would allow U.S. utilities to bring money back into the country without harsh tax penalties, thereby freeing up capital to reinvest in assets here, pay down U.S. debt, or fund other liabilities.
Byline: 

Todd M. Landau, Tadd A. Fowler, and Craig King

Read Entire Article

Commission Watch: The Tyranny of FERC

The commission's power grab over bankruptcy courts condemns merchants to a corporate netherworld.

A new district court decision out of Texas tilts the field in favor of FERC's assertion of exclusive authority over who decides whether a debtor can terminate unprofitable power contracts. For merchant energy companies struggling with dwindling capital and mounting credit risks, this change could mean bankruptcy is no longer a viable option for reorganizing.
Byline: 

Kenneth Irvin and Robert Loeffler

Read Entire Article