How exactly does a retail energy marketer use the spread as a hedging device?
Explaining timing risks and magnitude risks.
Why are they ignored in transmission planning?
Ventyx, an ABB company, signed a new license agreement with diversified energy company Black Hills to deploy Ventyx's leading enterprise asset management (EAM) solution, Ventyx Asset Suite, across the utility's T&D operations. Black Hills is replacing its myriad existing systems to modernize and optimize its T&D operations as part of a broad "Utility of the Future" initiative. Black Hills will roll out Asset Suite in a phased approach across its gas and electric utility operations serving 777,000 customers in seven states.
Appendix:
In this appendix to “Opening the Black Box,” (Fortnightly, January 2014), we briefly describe the basic components of the models for managing aging assets: how to represent the condition of such assets and the outcome of replacement, maintenance, and testing decisions.
The model structure is one of optimal control with dynamic state variables and uncertainty. Let
A new approach to utility asset management.
Delivering value in a zero-growth market.
Disruptive technologies and resource shifts are changing the utility business model. Market factors are driving companies toward four possible paths.
Positioning to win in the contest for scale.
The industry’s slow-and-steady pace of mergers seems to be picking up speed, as larger and well-positioned players overtake smaller and weaker targets. Realizing the greatest value from consolidation requires companies to assess their strengths and weaknesses and focus on performance improvement—both before and after a deal gets done.
State regulators grapple with investments, supply planning, and structural issues.
The opposing challenges of higher gas prices and rising environmental concerns have put utility regulators in a difficult position: How can they bring rate stability while minimizing environmental impacts? At the same time, they are grappling with trends in consolidation, competition, transmission planning, and distribution service quality. Each state brings a different view of the changing utility landscape. For insight, Fortnightly brought together regulators from several states to discuss their plans and priorities for today and the future.
Ratemaking Special Report: Survey respondents weigh in with needed actions.
The utility regulatory process is prone to controversy, given the inherently adversarial roles and varied viewpoints among the utilities, regulators, and other stakeholders. Oft-heard pleas of "why can't you just see this issue my way" or "can't we all just get along" underscore the deep-seated frustrations of utility leaders and regulators in trying to find a common ground for addressing crucial issues surrounding the formulation of business strategies, establishment of responsible financial goals, and setting of operational performance standards for the regulated gas and electric distribution utility segments of the energy industry.