The advent of smart grid technology has raised new and challenging issues concerning data privacy. Of course, data privacy isn’t a new concern for the energy industry, as utilities have always collected customer data, some of which is common to any business, such as contact and credit information, and some of which is unique to the energy industry, such as usage and demand data.

IIt’s ironic that in today’s market, as the cost of hedging against commodity price increases has declined, support for utility hedging programs has sunk to a historic low. The ideal time to hedge is when prices are low and markets are relatively calm, because that’s when hedging costs and risks are the lowest. Conversely, waiting until prices rise and markets become volatile will expose customers to higher costs. Convincing regulators to approve hedging programs now will require a collaborative approach to educating and enlisting support from stakeholders.

Policy makers in the E.U. and the United States are taking different approaches to facilitating smart grid development. While both regions are setting standards that the rest of the world likely will follow, they also face difficult challenges in resolving issues around cost recovery, customer engagement and workforce preparedness.

People

New Opportunities:

The Federal Energy Regulatory Commission appointed Joseph H. McClelland director of its Division of Reliability in the Office of Markets, Tariffs, and Rates. McClelland is general manager of the Custer Public Power District in Nebraska.

Colorado Gov. Bill Owens appointed Carl Miller, a state representative, to the Colorado Public Utilities Commission (PUC). The reports that Miller cannot seek re-election because of term limits.

People

New Positions:

Rep. Joe Barton, R-Texas, stepped into the role of chairman of the House Energy and Commerce Committee, succeeding Rep. Billy Tauzin, R-La., who is leaving Congress.

Duke Energy named David Hauser as its permanent CFO. He had been acting CFO since November. He succeeds Robert Brace, who resigned.

 

How Colorado's settlement in the Xcel merger builds a case for treating needy ratepayers as a separate class entitled to merger benefits.

WHEN 42 PUBLIC UTILITY COMMISSIONERS HUDDLED in private recently at the Brown Palace Hotel in Denver to discuss their roles come 2003, they came to a striking conclusion: Someday they might be out of business. Some said it would take five years, others said as long as 10.

"There was quite a bit of discussion and interest in commissions actually formulating what they call an 'exit plan,' by which they meant, in a kind of systematic way ... being prepared to wind back on their regulatory oversight," says Douglas N.

The Colorado Public Utilities Commission is expanding its investigation into the unbundling of natural gas local distribution services and rates.

The staff investigation follows a report on gas industry restructuring to the state Legislature by Hagler Bailly, a consulting firm, and a commission hearing on the report. According to the commission, this "next step" in the review process is designed to solicit further input from stakeholders and to refine the issues into an unbundling framework.