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Fortnightly Magazine - April 2010

Vendor Neutral

Generation

FEI Company, a diversified scientific instruments company providing electron and ion-beam microscopes and tools for nanoscale applications, completed a multiple system installation at the Materials Ageing Institute (MAI) in France, a utility-oriented research center financed by Electricite de France, the Tokyo Electric Power Co., the Kansai Electric Power Co. and the U.S. Electric Power Research Institute.

People

(April 2010) MidAmerican Energy Holdings announced the appointment of Michael Dunn as president of PacifiCorp Energy. NiSource Inc. announced that Jimmy D. Staton, executive v.p. and group CEO of NiSource’s gas distribution business, also will assume the added responsibility of leading the NiSource Indiana utilities, including Northern Indiana Public Service. Vectren chose Carl L. Chapman to serve as CEO. And others.

Fill 'er Up

Smart Grid as Quick-E Mart

Michael T. Burr, Editor-in-Chief

During interviews for this month’s cover story, “Customer Service: 2020,” leaders in the world of back-office information technology (IT) spoke with Fortnightly about customer service and the smart grid. They came from companies as diverse as Oracle and Telus, HP and Convergys, Vertex and SAP. But whatever the company, whatever the discussion, almost every leader came around eventually to focus on a single agent of change—the rise of electric vehicles.

Gas Market Outlook

Why America’s bridge fuel faces a road block.

Lee Van Atta

In 2009, unconventional shale gas emerged as the dominant driver in North American natural gas markets. Rapid increases in shale gas production and shale-driven upward revisions to the U.S. natural gas resource base have reversed the outlook for the U.S. natural gas supply. In contrast, the economic recession and growing uncertainties around the role of natural gas in power generation have clouded the outlook for natural gas demand. Natural gas has been called the “bridge fuel” for its potential to support the transition to a low carbon U.S. economy.

Two Hands Clapping

Has demand response hit an evolutionary dead end?

Bruce W. Radford

On March 18, the day after this issue went to press, FERC was scheduled at its decisional meeting to open a new formal inquiry on the role of demand response in regions that already have competitive wholesale power markets. In particular, how much money should grid operators pay to electric customers who promise not to buy wholesale power?

Customer Service: 2020

Grid upgrades spark an interactivity revolution.

Michael T. Burr

The smart grid is opening the floodgates on customer data, just as consumers are getting comfortable with retail self-service and mobile apps. With dynamic rates, distributed generation and electric vehicles just around the corner, big changes are coming in the utility-customer relationship. Will IOUs let upstarts control the new energy market?

Beyond Green Hype

Getting realistic about energy efficiency.

Sartaz Ahmed et al.

Is energy efficiency the answer to all our energy problems? The solution is more complicated than the hype would suggest. Only a practical approach can overcome barriers to capturing efficiency savings as a sustainable resource.

Reconsidering Resource Adequacy, Part 1

Has the one-day-in-10-years criterion outlived its usefulness?

James F. Wilson

The one-day-in-10-years criterion might have lost its usefulness in today’s energy markets. The criterion is highly conservative when used in calculating reserve margins for reliability. Can the industry continue justifying the high cost of overbuilding?

Fuel Swap

Natural gas as a near-term CO2 mitigation strategy.

Sean Casten

Will CO2 reductions and investments in non-emitting resources lead to rising costs and economic malaise? Not if America ramps up natural gas generation and turns down coal generation to achieve CO2 reductions of 14 to 20 percent.

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