Strategic transformation demands more than score-keeping skills.
Several of the industry’s top-performing companies have been guided by CFOs with an expansive sense of what the finance office should offer to the business. Increasingly CFOs are developing the skills and capabilities to move beyond the traditional role of traffic cop to the more valued roles of business partner and enabler.
Is electricity price-elastic enough for rate designs to matter?
Contrary to conventional wisdom, electricity demand isn’t immune to price elasticity, and rate designs can encourage conservation. In particular, inclining block rates coupled with dynamic pricing can cut electric use by as much as 20 percent.
Green investments require bulletproof financing.
Originally developed to compensate U.S. electric utilities for regulatory assets rendered uneconomic by deregulation, so-called “stranded-cost” securitization techniques are finding new applications. To date, utilities have issued approximately $40 billion of stranded-cost securitizations. That number could increase dramatically if the industry applies well-tested securitization techniques to the extraordinary costs it faces in the future.
New England shows the benefits of demand resources in forward capacity markets.
By Sandra Levine, Doug Hurley and Seth Kaplan
New England is leading the way toward a future that is both cleaner and provides greater electric reliability at reduced cost. New England Independent System Operator (ISO-NE) has created an innovative mechanism that addresses concerns about ensuring adequate energy capacity by allowing the cleanest and lowest-cost resources to be used to meet the nation’s power needs.
California learns painful lessons from its proposal to mandate demand response.
When the California Energy Commission (CEC) proposed to include programmable communicating thermostats in the state’s new building codes, it expected some push-back from home builders. It didn’t expect what it got: a major public outcry.
Special report on public support for smart metering and demand response.
Michael T. Burr, Bruce W. Radford and Scott M. Gawlicki
Smart metering is entering the public consciousness. But gaining support from consumers is tricky business, as evidenced by the recent backlash in California. Customers will accept dynamic pricing and demand-response capabilities only if regulators and utilities take a soft-sell approach.
Strategic pain points require an artful approach.
Monica Benner and Mani Vadari
Utilities are at the threshold of some of the most significant changes they have faced in their history, rivaling the passage of PUHCA in 1935. This change emanates primarily from a handful of key business drivers associated with major technological improvements (i.e., AMI, smart grid), the need for increased customer focus, increased regulatory mandates, and a changing workforce.
Why U.S. public utility commission-style ratemaking has becomes a hit overseas.
Gregory Aliff and Branko Terzic
What are some approaches to regulation adopted in recent decades by national governments, and the implications for management making international investment decisions?
Does anyone care about rising redispatch costs?
Richard Lauckhart and Gary L. Hunt
Regional transmission organizations (RTOs) or independent system operators (ISOs) dominate the major power grids of North America, with the notable exceptions of the Southeast and Pacific Northwest. The purpose of this article is not to criticize system reliability but to highlight the more pervasive challenge today and for the future: Controlling the cost impact of decisions by grid operators on energy market participants.
Investments in energy efficiency can be a growing revenue source. Strong programs, in conjunction with effective monitoring and verification, are the keys to success.
To turn efficiency investments into a growing revenue source, strong programs, in conjunction with effective monitoring and verification, are the keys to success.