General Electric

People

(October 2005) Xcel Energy named Jacob P. Mercer assistant treasurer for the utility and its operating subsidiaries. Portland General Electric appointed Bill Valach director of investor relations. Federal Energy Regulatory Commission Chairman Joseph T. Kelliher appointed John S. Moot as the commission's general counsel. PJM Interconnection has realigned responsibilities among five executives. And others...

Windpower: Beyond Boom and Bust

Windpower is caught in a vicious cycle of Washington politics. Escaping the cycle will require visionary leadership in Congress and the utility industry.

With the Production Tax Credit subject to the whims of a fickle Congress, U.S. windpower remains in an ongoing state of uncertainty. Will the United States embrace the technology?

The Exelon-PSEG Super Merger: A Nuclear Liability?

Experts debate the risks of a proposed acquisition that would increase the largest nuclear fleet in the country.

Even as many energy and financial experts are touting the so-called “synergies” of the proposed merger between Exelon and PSEG, some are growing concerned over one of the deal’s chief selling points: the high concentration of nuclear power.

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.

Irreconcilable Differences?

Imported natural gas contains more Btus and fewer impurities than the domestic variety, raising questions for LNG development.

While the gas industry is not yet ready to admit it, there may be a high price to pay to deal with the differences that come from an increase in imports of natural gas from overseas. But the alternative of not paying to avert a natural gas crisis would be irreconcilable.

Business & Money: Fencing in the Regulated Utilities

Credit-rating linkage harms certain power companies. Ring-fencing is the best answer for regulators.

Ring-fencing may be the only regulatory device capable of leveling the playing field and forcing the holding companies to absorb the consequences of failed non-utility investments.

Perspective

Grid reliability is one giant step in mainstreaming the technology.

Perspective

Grid reliability is one giant step in mainstreaming the technology.

Wind power is coming of age in the United States. During the past five years, installations have grown by an average 28 percent yearly. Gleaming, high-tech wind turbines now are interconnected to the bulk power grid in some 30 states.

Power Measurement

A look at issues that could keep energy executives up at night.

Power Measurement

A look at issues that could keep energy executives up at night.

The most common strategic issue depriving utility executives of sleep is the looming clash of investor expectations for steady growth in earnings compared with what utilities can deliver given slow growth in customers and demand. While many dream of assured regulated rates of return, the reality for most utilities is that the 1.5 percent retail growth experienced between 2002 and 2003 will prove unsatisfactory for earnings.

Triggering Nuclear Development

What construction cost might prompt orders for new nuclear power plants in Texas?

Evaluating the risk associated with new capacity investments is essential in today’s uncertain energy market, but a new business model could jumpstart nuclear plant investment.

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.