Increasing prices for materials, equipment and services are driving utility infrastructure costs into uncharted territory.
Greg Basheda and Marc Chupka
The evidence is overwhelming: After a decade of relatively stable, or even declining, construction costs, the industry is now facing a prolonged period of elevated construction price tags. What are the causes behind this trend, and how might the cost increases translate into higher rates?
FERC would relax price caps—sending rates skyward—to encourage customers to curtail loads.
About four months ago, at a conference at Stanford University’s Center for International Development, the economist and utility industry expert Frank Wolak turned heads with a not-so-new but very outrageous idea.
Green credits are maturing to become real, tradeable assets.
Michael Zimmer, Jason T. Hungerford, and Jennifer M. Rohleder
By displacing electricity produced from fossil fuels, renewable power plants produce two distinct products—commodity electricity and a set of environmental attributes (particularly avoided emissions). These environmental attributes can be packaged into a product called a renewable energy certificate, or REC, and sold separately from the electricity. As REC markets develop, key issues are being addressed regarding market interaction.
(November 2007) Pacific Gas and Electric Co. elected William D. Arndt to the newly established post of vice president, project management and program office. Calpine Corp. promoted Zamir Rauf to treasurer and senior vice president of finance. FirstEnergy Corp. named William D. Byrd director of rate strategy, vice president and chief risk officer. The U.S. Nuclear Regulatory Commission assigned David Dumbacher as senior resident inspector at the Callaway nuclear plant, near Fulton, Mo. And others...
What the U.S. electricity sector must do to significantly reduce CO2 emissions in coming decades.
Revis James, Richard Richels, Geoff Blanford, and Steve Gehl
The large-scale CO2 reductions envisioned to stabilize, and ultimately reverse, global atmospheric CO2 concentrations present major technical, economic, regulatory and policy challenges. Reconciling these challenges with continued growth in energy demand highlights the need for a diverse, economy-wide approach.
The need for many hundreds of billions of dollars in capital expenditures creates huge opportunities and challenges, especially in a more challenging credit environment.
An estimated $900 billion of direct infrastructure investment will be required by electric utilities over the next 15 years, and $750 million already is in place. Nukes, renewables, low-carbon technologies, combined-cycle gas turbines—all have faced cost challenges. The magnitude of the numbers requires a multi-pronged approach.
The big challenge facing the Northeast energy markets.
The Northeast energy markets are working hard to establish new levels of regional coordination and cooperation. The region’s concerted effort is essential to resolving some of the industry’s toughest issues since the individual markets evolved. These issues include the elimination, reduction, or bridging of seams issues that prevent the economic transfer of capacity and energy between neighboring wholesale electricity markets, or control areas, as a result of incompatible market rules or designs.
Will 2007 be remembered as the year of the turnaround? Several new CEOs with bold transformation programs took top spots in our third annual ranking.
(September 2007) Consistent performance over time is the Holy Grail of corporate management, and a focus of many of the executives who made this year’s ranking. Who returned to the list, and who fell off? And more important, why?
A lengthy letter to the editor addresses whether the Energy Information Administration’s gas-market forecasts, as laid out in a recent article, are biased. The authors of the original piece, Timothy J. Considine and Frank A. Clemente, then respond to the letter.
The 2005 Act, designed to streamline projects, may fall short of that goal.
David B. MacGregor and Matthew J. Agen
The Energy Policy Act of 2005 was supposed to streamline the siting process and provide a federal “trump card” for projects delayed at the local level, but it is far from clear whether these goals have been, or will be, achieved.