Become a PUF Member Organization

FERC

ROE: The Gorilla Is Still at the Door

Incentive regulation is not a cure-all for the continuing controversy over return on equity.

Incentive regulation can provide benefits both to utility shareholders and customers by encouraging greater efficiency. But even if incentive regulation supplants traditional COS regulation, regulators and utilities still will need to confront the same basic ROE questions that have vexed both for many years. Because the base ROE under incentive regulation will be an integral part of the incentive structure itself, it ought not to be done as an afterthought. The approach described here is one way to address this important issue.
Byline: 

Jonathan A. Lesser

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

The New CEOs

Whether utility leaders come from law, engineering, or finance, one thing can be said: Many of the new CEOs have had diverse experiences.

Our annual CEO survey looks at six new utility leaders: Mike Morris of AEP, Robert McGehee of Progress Energy, Michael Chesser of Great Plains Energy, Gary Rainwater of Ameren Corp., Dennis Wraase of PEPCO, and Paul Anderson of Duke Energy.
Byline: 

Richard Stavros

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

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

CIS: The New Profit Machine

How IT can allow utilities to invest in customers — and even improve returns — without breaking the bank.

The North American CIS market is undergoing a transformation. What should utilities expect from a CIS system? What should they spend? And, is CIS system replacement always the answer?
Byline: 

Lori A. Burkhart

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