The new Clean Air Interstate Rule is having an unexpected impact on power generation asset values.
With compliance costs estimated at $50 billion to $60 billion during the next 15 years, the Clean Air Interstate Rule (CAIR) affects just about every market participant in the electric power industry.
Chief financial officers discuss new strategies and the possibility of further convergence inside and outside the energy industry.
A whole new cast of characters is expected to enter the energy industry—overseas ventures, telecom firms, insurance companies, and financial-services groups. But even as the future seems to hold boundless opportunity, utility executives and industry experts continue to disagree on what sort of consolidation is right.
Which is the best energy company?
(September 2005) Top honors in our first annual financial ranking go to those staying with the basics and to those dealing with soaring commodity prices.
Which utilities and states will be most affected by the new rules?
Environmental Emissions: The cost to power markets of the Clean Air Interstate Rule depends on the ability to trade mercury.
The decision to limit mercury provides cover for utilities reluctant to spend on controlling NOx and SO2, while boosting other companies
Exelon Chairman, President, and CEO John W. Rowe, on the proposed merger that would create the largest utility in the United States.
People
New Opportunities:
The California Public Utilities Commission (PUC) named Steve Larson executive director. Larson most recently was executive director of the California Energy Commission and chief deputy director of the department of finance.
PG&E Corp. elected Leslie H. Everett senior vice president and assistant to the chairman. PG&E Corp. also elected Russell M. Jackson senior vice president, human resources.
People
New Opportunities:
Stephan T. Haynes, who has been American Electric Power's vice president of risk oversight since January 2002, was named vice president of corporate finance for the company.
Kay G. Priestly was named Entergy Corp.'s vice president of financial issues management. Priestly earlier was managing partner at Arthur Andersen.
Building a system to evaluate the leadership's ability to meet corporate goals.
Nominating committees and CEOs need to ask hard, fundamental questions about their own boards and their board's ability to formulate and govern effective and ethical business strategies. One way to know where you stand is to draw a basic matrix chart. Along the top, list the skill sets your board will require to move the company toward its future goals. Down the left-hand column, list each director. Then begin to check the skills that each current director brings to the board.