Creating the Perfect Regulator
Regulatory complexities call for supernatural skills
A regulator’s “goodness” is defined by four fundamental traits: Omniscience; Solomonic Wisdom; Clairvoyance; and Righteousness.
Fortnightly Magazine - November 2007
People
(November 2007) Pacific Gas and Electric Co. elected William D. Arndt to the newly established post of vice president, project management and program office. Calpine Corp. promoted Zamir Rauf to treasurer and senior vice president of finance. FirstEnergy Corp. named William D. Byrd director of rate strategy, vice president and chief risk officer. The U.S. Nuclear Regulatory Commission assigned David Dumbacher as senior resident inspector at the Callaway nuclear plant, near Fulton, Mo. And others...
The Meter Is Running
Oracle’s software guru Guerry Waters eats and breathes the new infrastructure.
Oracle’s Guerry Waters is one of the country’s leading gurus on smart-meter technology—a business sector with huge potential for addressing today’s environmental problems.
U.K. Carbon Lessons
Emissions regulations are reshaping the U.K. and Irish energy markets.
As U.S. policymakers consider how to tackle the challenge of greenhouse-gas constraints, the U.K.’s approach to the problem offers instructive examples.
Iatan 2: A New Coal Model
KCP&L breaks ground on a novel structure for billion-dollar plant investments.
To the casual observer, the Iatan 2 power plant under construction in Platte County. Mo., is simply another coal-fired facility. However, when viewed by a utility executive facing seemingly non-stop global-warming headlines and news broadcasts, the 850 MW Iatan 2 looks more like a new regulatory and business model for building coal burners.
RECs Get Real
Green credits are maturing to become real, tradeable assets.
By displacing electricity produced from fossil fuels, renewable power plants produce two distinct products—commodity electricity and a set of environmental attributes (particularly avoided emissions). These environmental attributes can be packaged into a product called a renewable energy certificate, or REC, and sold separately from the electricity. As REC markets develop, key issues are being addressed regarding market interaction.
Demand-Side Dreams
FERC would relax price caps—sending rates skyward—to encourage customers to curtail loads.
About four months ago, at a conference at Stanford University’s Center for International Development, the economist and utility industry expert Frank Wolak turned heads with a not-so-new but very outrageous idea.
Regulators Forum: Restructuring Rollback
State-policy turmoil reshapes utility markets.
As many states move toward re-regulation, we speak to commissioners in Illinois, Missouri, Pennsylvania, Texas, and Virginia to learn how policies are evolving—and how far the regulatory shakeup will go
Annual ROE Survey: Capitalizing On Grid Concerns
Regulators use rate cases to craft incentives for capital spending.
(November 2007) Fortnightly's annual rate-case analysis reveals a new trend at state PUCs involving return-on-equity rate allowances. Regulators increasingly are giving utilities an earnings incentive to pursue preferred investments.
Deregulation, Phase II
Recent electricity pricing argues for faster, more extensive deregulation.
Was restructuring a success? Prices provide a dispassionate analysis, showing that restructuring was poorly designed, badly executed, and focused on the wrong part of the grid. With those lessons learned, it’s time to explore ways to move forward.