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Fortnightly Magazine - May 2005

People

New Opportunities:
We welcome submissions to People, especially those accompanied by a high-resolution color photograph. E-mail to: photos@pur.com

People

New Opportunities:

Federal Energy Regulatory Commission Chairman Pat Wood III said he would leave the commission at the conclusion of his term of office June 30. Wood is the longest-serving appointee of George W. Bush, who as governor of Texas in 1995 appointed him to the Texas PUC.

Power Measurements

A forecast for California on Aug. 16, 2006
Gary L. Hunt and Richard Lauckhart

Power Measurement

A forecast for California on Aug. 16, 2006

Transmission congestion affects both the cost and the efficiency of the electric power grid. Traditionally, transmission congestion has been managed as an engineering or contractual matter, through physical management of the grid or contractual management of "contract paths" for delivering electricity.

Perspective

Exelon Chairman, President, and CEO John W. Rowe, on the proposed merger that would create the largest utility in the United States.
Richard Stavros

Perspective

Exelon Chairman, President, and CEO John W. Rowe, on the proposed merger that would create the largest utility in the United States.

There are utility chief executive officers (CEOs) and then there is utility chief executive officer, or the captain of all captains.

Commission Watch

Electric M&A:
Bruce W. Radford

Commission Watch

Electric M&A:

The merger with PSE&G may herald a new industry structure, squarely at odds with regional markets.

Call it the merger that broke the bank.

The marriage between Exelon and PSEG, owner of the utility Public Service Electric & Gas (PSE&G), formally proposed in February in papers filed at the Federal Energy Regulatory Commission (FERC), would create the largest electric utility in the United States.

Business & Money

A review of the ongoing evolution of market design.
Craig Hart

Business & Money

A review of the ongoing evolution of market design.

LICAP, ICAP, UCAP, NoCAP. Some markets have them, some don't. Where they do exist, no two are equal.

Technology Corridor

Data Mining and Warehousing:
Bill Barnett

Technology Corridor

Data Mining and Warehousing:

Many utilities have no ability to turn raw customer information into significant insights about their business.

In the utility industry, any discussion of improvements in either customer or revenue management requires consideration of the critical importance of the customer-information system (CIS).

Mastering the Mastering Agreement

Special Series Part 5:  How to find "commercially reasonable" valuation in power contract terminations.

Justin Harlow and Brett Friedman

Contract termination should be easy. Consult the applicable master agreement, calculate the close-out amount, and send or receive a check. If only it were so. In this discussion, we investigate the guidance offered in the key electricity master agreements regarding the calculation of settlement amounts following an event of default and subsequent termination. We also illustrate what we perceive to be a "commercially reasonable" or "good faith" approach to determining settlement amounts.

Windpower: Beyond Boom and Bust

WINDPOWER:
Michael T. Burr

WINDPOWER:

Windpower is caught in a vicious cycle of Washington politics. Escaping the cycle will require visionary leadership in Congress and the utility industry.

Windpower has come a long way in the past decade. Ten years ago, utility planners were hesitant about adding windpower to their systems.

DER: Hastening Genco Obsolescence?

DER:
S. W. Hadley, T. K. Stovall

DER:

This final installment of Oak Ridge National Laboratory's series on distributed energy resources investigates efficiency, the environment, and generation displacement.

Distributed energy resources (DER) have been touted as a clean, efficient way to generate electricity at end-use sites, potentially allowing the exhaust heat to be put to good use as well.

The Next M&A Wave: Fulfilling the Value Proposition

The Next M&A Wave:
Tom Flaherty and Bill Kemp

The Next M&A Wave:

If mergers are once again a potential strategy for accomplishing growth objectives, the previous round of transactions offer several lessons.

Over the last 15 months, much of the utility sector's lost market capitalization gradually has been restored. Some companies have, in fact, soared to all-time valuations on the strengths of distinguishable strategies and strong execution.

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