Business & Money
An analysis of the strategic implications of the re-basing of power and utility industry valuations.
Over the past several months, traditional valuation levels have re-emerged in the power and utility industry, with recent premium valuation metrics compressing significantly.
Business & Money
A spate of proposed U.S. tax rule changes soon may open a window of opportunity for certain utilities.
In the mid-1990s, before the rise of the Internet and the fall of Enron changed the calculus of business investing and the regulatory landscape, the historically staid U.S. utility industry began to be viewed as a "growth play." This triggered a global buying spree that led U.S. companies to invest tens of billions of dollars in electricity generation and distribution businesses all over the world.
Despite development challenges, LNG capacity is destined to play a bigger role in the U.S. energy mix.
When MidAmerican Energy announced its plans to build a pipeline to bring stranded Alaskan natural gas into the lower-48 states, the U.S. energy industry stood up and took notice. If successful, the project will bring the largest infusion of gas that this country has seen in many years-and not a moment too soon.
Financial players and load-serving utilities are looking for power asset deals.
Despite talk of wide bid-ask spreads in the past two tumultuous years, some 60 sales of generation assets have been announced. These sales cover more than 22 GW of capacity, valued on a cash-and-debt basis at approximately $11 billion. A wide variety of buyers and sellers have participated in the sales activity, with a pronounced entry by financial players (investment banks and private equity firms) and load-serving entities (LSEs) looking for capacity to serve their load.
Business & Money
Wall Street bankers say utilities are not effectively telling their story.
People
New Positions:
The Nuclear Energy Institute elected Stephen R. Tritch and Mark F. McGettrick to its board of directors. Tritch is Westinghouse Electric Co. president and CEO, and McGettrick is president and CEO of generation at Dominion Energy.
Paul B. Vasington, former chairman of the Massachusetts Department of Telecommunications and Energy, joined the Analysis Group as vice president, based in the company's Boston office.
A review of which technologies and companies stand to win and lose as a result of the 2003 blackout.
Mishap, human error, and malice regularly crash the electric system. We have lurched from the Western economic power crisis of 1999-2000 to the Eastern reliability power crisis of 2003. Neither more studies nor more blackouts have changed what's been built-an excessive quantity of large generation plants dependent on relatively few major transmission lines. On its current course, the grid's inevitable destination is disaster.
Frontlines
The Northeast Blackout goes political.
Nearly a year ago, cover story announced the rise of the chief risk officer (CRO). "Utility senior management is becoming positively enamored with the office of the CRO," we said. "Fully 40 percent of America's CROs work for utilities and energy companies."
"Back-to-basics" strategies challenge enterprise-risk philosophies.
Nearly a year ago, cover story announced the rise of the chief risk officer (CRO). "Utility senior management is becoming positively enamored with the office of the CRO," we said. "Fully 40 percent of America's CROs work for utilities and energy companies."
The commission nails companies, but orders payments.
The Federal Energy Regulatory Commission (FERC) finally dealt with the many issues that arose out of the 2000/2001 California energy crisis. On June 25, FERC issued a slew of orders that settled some old disputes, gave a glimpse of the future, and offered insight into the commissioners' thinking.