An analysis of the timing, location, and mix of new capacity additions that may be needed in the future.

It is universally accepted that there is excess generating capacity in most, if not all, regions in the country. Looking forward, several obvious, and interesting, questions arise: (1) When will new capacity be needed? (2) Where will it be needed? and (3) What types of plants will be needed? As any good economist would say, it all depends.

People

New Opportunities:

Allegheny Energy named Max Kuniansky director of investor relations. He previously held the position of vice president of investor relations for B/E Aerospace and investor relations specialist for FPG Group Inc.

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.

How far do states rights go in transmission planning?

The energy industry, coming off a remarkably difficult few years, had to deal with the huge Aug. 14 blackout, the ramifications of which have now reached regulatory policy. By putting transmission planning and reliability in the spotlight, the blackout could boost merchant transmission owners, as regulators and politicians scramble to make sure such an event does not happen again.

New Positions:

Virginia's State Corporation Commission (SCC) named Howard M. Spinner as director of its Division of Economics and Finance, replacing Richard J. Williams. Williams is retiring after 22 years with the commission. Spinner has been with the SCC since 1998.

The Western Electricity Coordinating Council board of directors elected Jack L. King as its chair and Ronald D. Nunnally and Tim Newton as vice chairs.

Western Markets: An Investor's Minefield

 

New Hires:

DPL Inc. named James V. Mahoney president of DPL Energy LLC. Mahoney has been with EarthFirst Technologies since 2001.

The board of directors of Piedmont Natural Gas elected Kim R. Cocklin senior vice president and general counsel. Cocklin's previous experience includes time as senior vice president at Williams Gas Pipeline and senior vice president and general counsel at Texas Gas Transmission Corp.