Calendar of Events

Oct 20, 2014 to Oct 23, 2014 | Orlando, FL
Oct 27, 2014 to Oct 31, 2014 | Clearwater Beach, FL
Nov 05, 2014 to Nov 06, 2014 | Las Vegas, Nevada

Keywords

Public Utilities Reports

PUR Guide 2012 Fully Updated Version

Available NOW!
PUR Guide

This comprehensive self-study certification course is designed to teach the novice or pro everything they need to understand and succeed in every phase of the public utilities business.

Order Now

cash flow

CFOs Speak Out: Looking Beyond Power

Chief financial officers discuss new strategies and the possibility of further convergence inside and outside the energy industry.

Richard Stavros

A whole new cast of characters is expected to enter the energy industry—overseas ventures, telecom firms, insurance companies, and financial-services groups. But even as the future seems to hold boundless opportunity, utility executives and industry experts continue to disagree on what sort of consolidation is right.

Big-Time Mergers? Not So Fast, My Friend...

 Whole-company deals may not take off with PUHCA repeal.

Edward Metz and Michael Tarney

One simple line in the recent Energy Policy Act sets the stage for broader geographical ownership by current utilities and easier ownership from outside industries. Readers know very well that one line calls for the repeal of the depression-era Public Utility Holding Company Act, and many pundits have stated that a wave of mergers and acquisition activity is now imminent.

What Is Your Power Portfolio Really Worth?

Change is the only certainty in today’s market.

Devrim Albuz and Mark Griffith

The past year has allowed the North American power sector to continue its recovery, but it has been a treacherous time for investing. Asset values, and the value of their associated debt instruments, are being driven in the short term by an extreme fuel market and in the long term by a back-to-basics mindset among electric utilities. Still, asset valuations in most markets are not yet at replacement costs, leaving current investors with a residual level of risk.

Building the Perfect Generation Portfolio

Finding and applying the efficient frontier.

James C. Letzelter

Buyers of power-plant assets use a number of tried-and-true approaches to asset valuation, including discounted cash flow and option-pricing models. While the valuation approaches employed generally are sophisticated, they focus almost exclusively on individual assets. Conspicuously missing is consideration of the asset portfolio as a whole. For illustrative purposes, we performed an assessment of a basic new power-plant portfolio. The results are well suited for general risk analysis and risk management, portfolio planning and restructuring, power plant acquisition, development, and divestiture.

The Fortnightly 40 Financial Ratings

Which is the best energy company?

Richard Stavros

(September 2005) Top honors in our first annual financial ranking go to those staying with the basics and to those dealing with soaring commodity prices.

Measuring Return on Equity Correctly

Why current estimation models set allowed ROE too low.

A. Lawrence Kolbe, Michael J. Vilbert and Bente Villadsen

A material capital structure mismatch, which occurs frequently, can lead to material misestimates of the appropriate allowed return on equity, perhaps on the order of 2 percentage points. That is, a 9 percent estimate of the cost of equity can imply an allowed rate of return on equity of 11 percent.

Clearing the Air On Emissions

How utilities can take a portfolio-management approach to environmental compliance.

Vikram Janardhan, Grant Thain, and Olof Bystrom

In March 2005, the Environmental Protection Agency (EPA) issued the final Clean Air Interstate Rule (CAIR) and Clean Air Mercury Rule (CAMR). Assessing the impact that these and other environmental policies have on the whole organization reveals implications for the corporate process at all levels.

LDCs: That Giant Sucking Sound

The consequences of short-sighted rate making.

F. Jay Cummings

Gas utilities and state commissions must work together to help preserve rates of return, encourage conservation, and lower customers’ bills.

CEO Pay Reflects Strong Stock Performance

The CEO Power Forum: TXU's Wilder nets $55 million package.

Edward Metz

Companies continue to embrace the back-to-basics strategy, and investors seem to think that it is paying off.

The Ultimate CEOs

The CEO Power Forum: Not all utility CEOs are created equal...

Interviews by Richard Stavros

We talk with Cinergy’s James E. Rogers, DTE Energy’s Anthony F. Earley Jr., Constellation Energy’s Mayo A. Shattuck III, Xcel Energy’s Wayne H. Brunetti, FPL Group Inc.’s Lewis Hay III, and TXU’s C. John Wilder.

Pages