When Électricité de France stepped in to buy Constellation Energy’s nuclear assets and help the company avoid bankruptcy, the Maryland Public Service Commission conditioned the sale on a set of ring-fencing provisions. The industry has been using such structures to protect ratepayers in complex and high-risk M&A transactions since the 1990s. The protection isn’t foolproof, however—and it can bring problematic regulatory trade-offs.
How to ensure another Chunnel, WPPS, or Big Dig doesn’t happen to you.
Rilck Noel and Terrel LaRoche
New generation projects face intense financial, regulatory, legal, and political scrutiny. To meet their communities’ power-supply needs with environmental sensitivity and fiscal prudence will require a new level of managerial excellence that some may not be able to achieve.
Carl J. Levesque, Lori A. Burkhart, Phillip S. Cross and Beth Lewis
Studies & Reports
Year 2000 Readiness. On Jan. 11 the North American Electric Reliability Council (NERC) predicted a minimal effect on electric system operations from Y2K software problems. The Department of Energy, which had asked NERC to run the electric industry assessment, added that 98 percent of U.S.
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