Price caps, secondary markets, and the revolution in natural-gas portfolio management.
When FERC decided in February, in Order 890, to lift the price cap for electric-transmission customers seeking to resell their grid capacity rights in the secondary market, it cautioned against expecting a quid pro quo for gas. Was the commission just teasing?
Utilities showed strong gains last year, but other industries are gaining ground.
The Dow Jones Utilities Index posted another year of solid gains in 2006. As might be expected, in connection with both the near-term and longer-term historical investor performance of the utility sector, there’s a story within the story. Further, this performance history provides a context against which the impact of both current and emerging issues can be assessed.
(March 2007) Constellation Energy named Kevin W. Hadlock vice president, investor relations, and Robert L. Gould vice president, corporate communications. Subsidiary Constellation NewEnergy appointed Emily Neill as business development manager. Dynegy Inc. announced several organizational changes related to the company’s proposed combination with LS Power. Robert W. Best, chairman, president, and CEO of Atmos Energy Corp., was elected chairman of the American Gas Foundation’s board of trustees for 2007. And others...
(November 2007) Public Service Enterprise Group elected Ralph Izzo president and COO of the company and a member of the board of directors. Ralph LaRossa is president and COO of PSEG’s utility business, Public Service Electric and Gas Co. WGL Holdings Inc., and its subsidiary, Washington Gas Light Co., named Douglas Staebler vice president of engineering and construction, and Lauren Foley named vice president of consumer services. ISO New England Inc. elected two new board members: Richard A. Abdoo and Paul F. Levy. And others.
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.
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.
(October 2006) Kansas City Power & Light promoted Kevin Bryant to vice president of Energy Solutions. American Electric Power announced a series of executive reassignments as part of the company’s succession planning strategy. Pacific Gas and Electric Co. elected Bill Morrow as president and COO. Bob Drennan, a 23-year Progress Energy veteran, has been named vice president of investor relations. And others...
A rash of rate hikes around the country could have utilities facing a public-relations disaster.
Constellation Energy CEO Mayo Shattuck has complained that he and the utility have unfairly been demonized in the public and in the press. In one interview with a Maryland paper, Shattuck showed distress over the verbal abuse his executives had received from angry ratepayers. And who can blame him?
Utilities must trim the fat from excessive stock options, stock grants and executive pay.
This month’s cover story focuses on how utilities intend to find the talent they’ll need over the next few years to replace all those retiring baby boomers. And part of that puzzle naturally involves executive pay: how to attract the best and brightest without going overboard on rewards for performance.
Congress gives FERC an impossible task: Craft long-term transmission rights to save native load from paying grid congestion costs.
If “perfect” be the enemy of the “good,” then look no further for proof than in Federal Power Act section 217(b)(4), enacted by Congress in EPACT 2005.