(August 2009) When I hear the new buzz word term dynamic pricing I think of politicians who may be socialist or liberal, but who call themselves “progressive.” Now, what thoughtful person would not vote for a progressive. Do you want to vote for someone who isn’t progressive? That would make you some kind of Luddite. The same holds true for the people now running around the country calling for “dynamic pricing” i.e., charging $5/kWh for up to 100 hours per year, and calling any other form of pricing “dumb rates.”
Ratable treatment of removal costs through depreciation should be favored.
John S. Ferguson
Removal cost is the expenditure involved with physical removal or safe abandonment of an asset, and is not a trivial matter, because it is not unusual for such expenditures for long-lived property to exceed the related depreciable investment amounts. Various treatments of removal costs have various effects on utility ratepayers. Of all the approaches the industry uses, ratable treatment through depreciation minimizes the costs borne by ratepayers.
How much efficiency do ratepayers need—and utilities want?
Bruce W. Radford
When the applause dies down, the smart grid may turn out to be its own worst enemy. The California Independent System Operator (CAISO) explained this irony in comments it filed in May, after the FERC asked the industry for policy ideas on the smart grid.
Intelligent infrastructure requires an intelligent policy framework.
Mark A. Gabriel
A new grid efficiency framework will bring a new understanding between regulators and utilities that allows the industry to advance in cutting carbon emissions and improving system efficiencies, while maintaining reliability.
The Waxman-Markey bill proposes a federal renewable electricity standard. This standard, combined with state mandates, raises the risk of forest land shortages and higher prices for food and feedstocks.
Gas utilities can make better use of their inspection budgets.
Griffith R. Morris and Kenneth M. Loflin
An entirely new and better approach to measuring risk and compliance allows companies actually to measure this kind of risk—that is, to measure the degrees of compliance regarding actual field practices versus written standards and procedures.
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