Fortnightly Magazine - November 2010

Penalty Predictability Enhanced

FERC modifies its enforcement guidelines.

FERC’s revised policy provides greater predictability and transparency in the commission’s approach to determining civil and criminal penalties under its statutory authority. Despite a more systematic framework, however, FERC retains discretion to assess penalties based on the facts of individual cases.

Baked-In or Decoupled?

Rate case risk in a climate of declining sales.

(November 2010) Data from 2010 ROE Survey documents the industry’s struggle to reconcile rate trackers and decoupling provisions in utility rate cases.

Legal Battleground

2010 Law & Lawyers Report

The U.S. utility industry has never faced a more uncertain legal and regulatory landscape. From FERC demand-response pricing to state ratemaking disputes, legal trends and decisions are reshaping the power and gas market. The industry’s top legal minds provide strategic counsel. By definition, a battlefield is an ugly place. Conflict creates chaos, uncertainty and danger.

DR Distortion

Are subsidies the best way to achieve smart grid goals?

FERC has proposed that wholesale energy markets should subsidize load reductions with full LMP (locational marginal price), without deducting the customers’ retail savings. Such a policy could distort the market, and other solutions might achieve the same objectives more efficiently.

The Case for Customer Centricity

Understanding consumer preferences in energy efficiency.

Utilities are just beginning to learn how to engage customers. Across business models and regulatory frameworks, realizing the full potential of smart metering requires a new core competence in consumer support.

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