A gas procurement incentive mechanism that provides strong incentives for a broad range of procurement-related costs and revenues, using a benchmark that is both exogenous and adaptive to external circumstances, can benefit consumers.

(January 2006) Kathleen Chagnon joined Saul Ewing LLP as a partner in its business department. Sierra Pacific Resources announced that Donald D. Snyder was elected to its board of directors. Avista Corp. named Linda M. Jones director of corporate communications. Allegheny Energy Inc. named Loyd (Aldie) Warnock vice president, external affairs. And others...

(August 2005) President Bush nominated Joseph Kelliher to chairman of the Federal Energy Regulatory Commission. Xcel Energy named Richard C. (Dick) Kelly CEO. And others...

Market-Power Tests

A review of the Federal Energy Regulatory Commission's market-based rate (MBR) screens, from theory to application.

Business & Money

Merchant Power:

A review of power plant deals in 2004 shows that utilities are buying.

Sales of merchant generating facilities during 2004 signaled several trends that illustrate how the power business is evolving. After a nadir in 2002, sales turned up during 2003 and then more than quadrupled during 2004. The backlog of merchant plants for sale is thinning. Buyers and sellers are closing the spreads that led to much talk but few actual sales.

Business & Money

Can economies of scale make the industry more stable?

The recent Northeast Blackout framed for regulators and public policy-makers one of the central issues confronting the utility industry: infrastructure reliability and the significant capital investment requirements necessary for improvement. While estimates vary widely, some industry experts currently project that the investment necessary to revitalize and secure the transmission infrastructure in the United States may run in excess of $100 billion.

People

New Positions:

William O. Ball moved to the role of senior vice president of transmission planning and operations for Southern Co. He had been Southern's vice president of transmission planning, policy, and support services since March of 2002.

The Southwest Power Pool (SPP) board of directors chose Nicholas A. Brown as the organization's president and CEO. Brown has been with SPP for 18 years, most recently as senior vice president and corporate secretary.

People

New Positions:

The Pennsylvania Public Utility Commission (PUC) appointed Thomas A. Leach to a two-year term on its Consumers Advisory Council. Leach is the business manager and financial secretary of Local Union 126, International Brotherhood of Electrical Workers.

Business & Money

Sizable gains return to the market.

 

With an average appreciation of 18.9 percent since we last ran SNL Financial's dividend data , SNL's safe dividend picks appeared to do well for any market. However, like the fine golden years of the late '90s for all things technology, recent months have returned sizable gains to investors of energy stocks-not what one would expect from slow growth, dividend-paying electric and gas utilities that make up the majority of the SNL Energy universe.

Will dividends become the sole focus for investor valuations of utilities?

With last month's favorable Senate vote to repeal the tax on dividends from 2004-2006 and reduce it 50 percent this year, and the high-profile conference committee meetings between the House and the Senate at press time, many are asking if investors are, or should be, beginning to evaluate utility companies solely on the basis of the dividend.