Engineering and construction firms adapt to a changing market.
Michael T. Burr
Engineering, procurement and construction (EPC) contracts are evolving as utilities seek to spread risks, contain costs, and execute their business strategies. As a result, turnkey contractors are adapting their capabilities to meet the industry’s changing needs. Leading EPC firms share their vision for a 21st century energy industry—and their role in building it.
Does the lack of long-term pricing undermine the financing of new power plants?
J.P. Pfeifenberger and S.A. Newell
The PJM Interconnect’s Reliability Pricing Model generally has succeeded in attracting and retaining low-cost generation and demand resources to maintain resource adequacy. But sluggish demand and low prices have weakened the market for long-term capacity contracts. Suppliers aren’t willing to lock in current low prices, and buyers don’t want to pay more for future certainty. Is the market dysfunctional, as some state lawmakers suggest, or does the lack of long-term contracts indicate a rational balance of supply and demand?
A strategic approach to mitigating rate increases and greenhouse gas price risk.
Amber Mahone, et al.
Experience in the Duke Energy Carolinas service territory shows that high penetration rates for electric vehicles, combined with increased natural gas-fired power generation, can result in lower costs to customers and lower risks for utility shareholders—while also reducing total emissions of greenhouse gases. However, these outcomes depend on policy changes that facilitate smart, off-peak vehicle charging, and that allow utilities to capture the benefits of a more environmentally friendly power system.
A deliberate approach to infrastructure advancement.
The electric power system has been getting smarter for decades, as new technologies allow better analysis and greater control. But most utilities have implemented these technologies in a piecemeal way, rather than as part of a long-term, enterprise-scale strategy. What are the consequences of this fragmented and incidental approach, and what would happen if we developed the smart grid in a deliberate way instead?
(December 2011) Lafayette Utilities System selects Elster’s EnergyAxis as its AMI system; ABB wins contract from Hydro-Quebec; Sapphire Power Holdings acquires gas-fired power generation from Morris Energy Group; Consumers Energy awards contract to Babcock & Wilcox; plus announcements and contracts involving BP Wind Energy, Abengoa Solar, Samsung C&T and others.
Whether it deserves it or not, the solar energy industry can’t count on continued government largess, thanks in part to the Solyndra mess. But in the end, Solyndra’s demise might be exactly what the industry needs to wean itself off heavy subsidies and become a mainstream resource.
Clean energy jobs will be gone soon, if America fails to commit.
America needs an energy policy today that will bring together our best and brightest, harness the limitless capabilities of our research institutions, and invest whatever it takes to ensure America’s leadership in clean energy technologies. The result will be to create billion-dollar industries and millions of new jobs.
(December 2011) Responding to Contributing Editor John Bewick’s analysis of factors impeding the nuclear renaissance in the wake of the Fukushima disaster. Plus comments about construction work in progress provisions as a strategy for saving ratepayers' money.
Iberdrola USA names new vice presidents; Michigan Governor appoints new commission chair; AGA and INGAA name new chief executives; plus senior staff changes at American Electric Power, Dynegy, GDF SUEZ, and others.
(December 2011) Iberdrola USA names new vice presidents; Michigan Governor appoints new commission chair; AGA and INGAA name new chief executives; plus senior staff changes at American Electric Power, Dynegy, GDF SUEZ, and others.
(December 2011) Riverstone/Carlyle acquire eight power plants; Entergy pays $346 million to NextEra for Rhode Island plant; plus asset sales by First Energy and Thermo Cogen, and debt issues by MarkWest, Atlantic Power, Mississippi Power, and SCE totaling $1.6 billion.
Public Utilities Reports 11410 Isaac Newton Sq., Suite 220, Reston, VA 20190 Voice: (703) 847-7720 | Toll Free: (800) 368-5001 FAX: (703) 847-0683
Dear Reader: Welcome to our new website! We’ve spent the past several months rebuilding Fortnightly.com from the ground up, and we’re now in the process of putting it through its paces. We’ll announce our Grand Opening shortly, but in the meantime we hope you’ll excuse our mess, while we bring Public Utilities Fortnightly magazine to an all-new online platform. Your feedback is welcome!