Engineers and constructors adapt to serve an industry in transition.
From gas pipelines to PV arrays, the nation’s contractors are seeing growth in utility infrastructure. Fortnightly talks with executives at engineering and construction firms to learn what kinds of projects are moving forward, where they’re located, and what lies over the horizon.
Securitization fails the test for financing environmental capex.
Utilities seeking financing for environmental upgrades should look to the markets for debt and equity, rather than trying to securitize those costs.
The Homer City decision increases uncertainty—but rewards forward thinking.
The D.C. Circuit’s CSAPR ruling reinforces the benefits of planning ahead and keeping options open. A diverse portfolio strategy reduces risks and costs.
Doing the right thing can drive utility stock performance.
Richard Rudden and Kyle Rudden
Utilities get little credit for their efforts to strengthen the sustainability of their businesses. But these efforts have paid dividends in stock performance, capital costs, regulatory relationships, and brand value. Capturing the greatest value for shareholders will require utilities to become better understood as socially responsible enterprises.
Navigating the power and gas markets.
James Hendrickson and John Corrigan
The power and gas markets look very different today from what we were anticipating three to four years ago. Gas has gone from seeming shortage to seeming abundance with recent spot prices falling to well under $3/mcf. Power prices and volatility are down significantly. Demand is soft and excess capacity exists in most of the country. While it might be easy to attribute the conditions in the power markets largely to the recession, the reality is that the fundamentals of the market are materially changing—creating opportunities while revealing new pitfalls.