Recovery

The Late Great Gas Utility

By abandoning R&D and marketing, the gas industry may have sealed its own fate.

Gas producers and utilities have all but abandoned R&D and marketing. Is it too late to reverse the death spiral, or can the industry learn from other check-off marketing successes?

The Color of Money

Wall Street sees “green” in demand response, energy efficiency, and distributed generation. Will the industry step up?

We recently conducted research to evaluate whether innovative solutions for meeting future energy needs such as demand response (DR), energy efficiency (EE), and alternative distributed generation (DG) (e.g., photovoltaic cells, wind, energy storage) could become a sustainable and viable part of the future energy infrastructure.

CIP Compliance: Reducing Your Risk

How utilities can navigate critical infrastructure protection requirements.

Operations personnel at many energy companies feel the pressure of achieving compliance with the NERC CIP standards. Some worry that they are not aware of the problems and security incidents that have occurred within their critical infrastructures. Some know that they do not have the procedures in place to maintain CIP compliance.

Spending Capital as if It Mattered

Infrastructure challenges are redefining utility capital-planning methods.

The capital pressures squeezing utilities today need to be offset by stronger alignment among the four critical dimensions of capital planning: strategic, regulatory, financial, and managerial.

The Fallacy of High Prices

We are better off under restructured electric markets.

The most important action regulators can take to minimize consumer electricity costs is, and will continue to be, ensuring competitive wholesale markets, while demanding a rich mixture of products from the suppliers in these markets.

Power Procurement: What's in Your Mix?

Why competitive markets are scaring regulators.

If the underlying wholesale electricity markets from which supplies are procured are competitive, then the remaining concerns regarding price levels and volatility can be addressed through regulatory policies.

The Cost of Katrina

Debate continues on how to safeguard America's energy infrastructure.

In the wake of Hurricane Katrina, the central question: Could any of this have been avoided? Many experts believe that the new authority given to FERC to enforce mandatory reliability standards, as per the Energy Policy Act of 2005, will bring greater transparency to the process of protecting critical infrastructure.

Finding the Utility's Core

Where should outsourcing end—and the real utility begin?

When utilities evaluate business process outsourcing, they need to determine which processes are most advantageous to outsource—core or non-core? Rather than debating the merits of core or non-core, perhaps the more critical questions utilities should ask are: How are our key processes performing? Are they cost-efficient and effective? Do they enhance or inhibit our corporate performance?

Power-Plant Cooling: How Many Fish Per kWh?

EPA flounders on the Clean Water rule, while producers tackle the real enemy—shortage.

The U.S. EPA says that a typical sport fisherman working the Great Lakes would pay $4.58 for the privilege of catching a single walleye/pike, but would gladly fork over $7.99 to land a trout, or as much as $11.19 for a salmon. Sound fishy? Yet the EPA would rely heavily on these data, and other figures quite similar, to justify its proposed “Phase III” rule to regulate cooling water intake structures at small power plants and other similarly sized facilities, to preserve aquatic and marine life in the nation’s lakes, rivers, streams, bays, and estuaries.

LDCs: That Giant Sucking Sound

The consequences of short-sighted rate making.

Gas utilities and state commissions must work together to help preserve rates of return, encourage conservation, and lower customers’ bills.