DC

Frontlines

The ISO graples with the politics of scarity.

The ISO graples with the politics of scarity.

In regions that have embraced electric industry restructuring, such as New York, New England, and the mid-Atlantic states, where independent system operators (ISOs) have taken over and the standard market design (SMD) has grabbed a foothold over bulk power transactions, one fascinating question still dogs theorists and policymakers alike:

Is a power supply shortage really all that bad?

Perspective

It is hard tyo foresee abandoning the discounted cash flow method relied upon so heavily for the past couple of decades.


It is hard tyo foresee abandoning the discounted cash flow method relied upon so heavily for the past couple of decades.

In the Feb. 15, 2003, edition of , Jonathan Lesser says that regulators need to rethink the traditional discounted cash flow (DCF) method for finding the cost of capital, or "at the very least, regulators should no longer rely solely on the DCF to set allowed returns."

Business & Money

In a "like kind exchange" transaction, the IRS permits a seller to defer taxes on its inherent gain on assets being sold.


In a "like kind exchange" transaction, the IRS permits a seller to defer taxes on its inherent gain on assets being sold.

The utility community is starting to experiment with a "like kind exchange" (LKE)-a type of tax-advantaged asset acquisition and disposition transaction used extensively in connection with commercial real estate and various types of personal property, but which heretofore has not achieved widespread acceptance in the utility industry.

Winds of Change in Texas

Rising gas prices spark a rush to wind farms, straining grid capacity and raising larger issues about market design.

 


Rising gas prices spark a rush to wind farms, straining grid capacity and raising larger issues about market design.

When the Public Utility Commission of Texas (PUCT) was drafting rules to encourage the use of renewable energy, it took pains to guard against the chance that power producers would fail to reach the state's target of 400 megawatts (MW) in installed new renewable generation capacity by Jan. 1, 2002. The commission needn't have worried.

Commission Watch

PUCs could face rate shock if feds push plans for an RTO signup bonus.


PUCs could face rate shock if feds push plans for an RTO signup bonus.

State PUCs will surely weigh in on the latest move by the Federal Energy Regulatory Commission (FERC) to work its will on the nation's electric transmission grid. In this case, the item in question concerns a policy statement proposed by FERC that would reward electric utilities for investing in new transmission upgrades and-more importantly-for joining up with a regional transmission organization (RTO).