Fortnightly Magazine - January 2008

Post-Meltdown Valuation

Credit-quality concerns join fuel and market factors to affect power-plant valuation

Lenders know there are billions of dollars of weak financial assets in the market, such as securities backed by bad mortgages. The problem is no one knows who is exposed at what level to those weak financial assets. This causes a lack of confidence in the lending industry, and a credit crunch that — if unabated — could cause a recession.

Nuclear Spin

Entergy’s $20 billion spin-off plan elicits yawns on Wall Street

(January 2008)Entergy Corp.’s announced plan to spin off about 5,000 MW of nuclear assets generated a major buzz when it was announced in early November.

Cyber Attack!

Special Report on Cyber Security and CIP Compliance

Utilities are gearing up for compliance with the new CIP standards. NERC, however, has taken a flexible approach to implementation that leaves some companies confused. Can utilities comply by 2009, and will their measures be effective in securing the grid?

Cyber Attack! CIP Goes Live

Utilities are gearing up for cyber security compliance. Will the standards prove worthy?

The NERC CIP standards represent an historic achievement. They include the first mandatory cyber security requirements of their kind to be imposed on a U.S. private-sector industry. Considering the scope and sensitivity of the grid-security issue, developing a set of enforceable standards inevitably would entail a complex and contentious process. From that perspective, NERC, FERC and the industry have made remarkable progress, and their efforts deserve accolades.

Cyber Attack! - Defining 'Critical Assets'

ERCOT utilities approach CIP compliance from varying perspectives

As proposed by the North American Electric Reliability Corp., the new critical infrastructure protection (CIP) standards charge utilities with identifying their own critical assets and related cyber systems. This approach allows great flexibility for utilities to apply the CIP standards to their particular situations. This will help ensure that their efforts focus on securing critical assets, rather than on complying with an overly prescriptive set of mandates that might or might not yield a secure grid.

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