Chief financial officers discuss new strategies and the possibility of further convergence inside and outside the energy industry.
A whole new cast of characters is expected to enter the energy industry—overseas ventures, telecom firms, insurance companies, and financial-services groups. But even as the future seems to hold boundless opportunity, utility executives and industry experts continue to disagree on what sort of consolidation is right.
By opening the field to far-flung deals, PUHCA’s repeal changes the merger game.
Michael T. Burr
The repeal of the 1935 Public Utility Holding Company Act has attracted a surprising amount of attention in the business and consumer press. But while some analysts predict a wave of utility M&A activity, others are more sanguine about the change.
What the legislation says about a national strategy.
Now that the Energy Policy Act of 2005 has had a chance to sink in, a review of the bill's perks and pork is in order. Supporters of the 1,724-page piece of legislation laud it as a triumph of job-creating bipartisanship that attempts to shore up our energy supply, while detractors call it a gargantuan giveaway to a well-heeled industry.
Let's enjoy this brief period of diminished acrimony before implementation of this landmark law.
In a time of record high gasoline prices, war, and increasingly shared global climate concerns, it is lamentable that the Energy Policy Act of 2005 does so little to address these critical issues. Within the narrower context of policies primarily affecting the electric power industry, however, this is a much more significant piece of legislation, and it includes a few accomplishments bordering on the extraordinary.
While a few provisions are worth embracing, most of its 1,724 pages represent a waste of good timber.
Peter Van Doren and Jerry Taylor
After four years of legislative trench warfare, contentious legal wrangling, and heated partisan rhetoric, President Bush finally got what he wanted—a really big energy bill. What he did not get, however, was an internally consistent "national energy strategy." Examination of the legislation reveals that its title—the Energy Policy Act of 2005—is less descriptive than the title popularized by Sen. John McCain: the No Lobbyist Left Behind Act of 2005.
Energy Trading & Risk Management: How to evaluate risk and improve decision-making capabilities.
James W. DeLoach and David M. Johnson
With a heightened focus on risk management, it has become increasingly clear that traditional risk-management approaches do not adequately identify, evaluate and manage risk. An ERM approach integrates risk management with existing management processes, identifies future events that can have both positive and negative effects, and evaluates the effectiveness of strategies for managing the organization's exposure to those possible future events. ERM transforms risk management to a proactive, continuous, value-based, broadly focused, and process-driven activity.
Energy Trading & Risk Management: A better framework for making decisions is required to ensure earnings stability and shareholder value in the utilities industry.
Henry Fayne, Michael Gettings, Wes Mitchell, and Gary Vicinus
Although utilities are refocusing attention on their traditional utility businesses, it is clear that the traditional utility decision-making framework is not sufficiently robust to meet the needs of today's utility executive. An effective executive decision framework provides better answers in the complex utility environment that exists today.
Debate continues on how to safeguard America's energy infrastructure.
In the wake of Hurricane Katrina, the central question: Could any of this have been avoided? Many experts believe that the new authority given to FERC to enforce mandatory reliability standards, as per the Energy Policy Act of 2005, will bring greater transparency to the process of protecting critical infrastructure.
(October 2005) Xcel Energy named Jacob P. Mercer assistant treasurer for the utility and its operating subsidiaries. Portland General Electric appointed Bill Valach director of investor relations. Federal Energy Regulatory Commission Chairman Joseph T. Kelliher appointed John S. Moot as the commission's general counsel. PJM Interconnection has realigned responsibilities among five executives. And others...
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