International reporting standards are coming for U.S. public companies.
Adoption of IFRS (International Financial Reporting Standards) in the United States undoubtedly will mark a significant change for many U.S. companies. But this change should not be feared. Moving to an entirely new accounting structure ultimately might enable companies to streamline reporting processes and reduce compliance costs.
A clear and present need for nuclear energy expansion.
C.E. (Gene) Carpenter Jr.
Addressing climate change will require extending the life of today’s nuclear fleet and laying the foundation for new plants.
A billion-dollar ‘gold rush’ could send grid rates through the roof.
Money may be difficult to come by for Wall Street financiers in these dark days, but apparently not for electric transmission construction—at least so far. A rash of recent orders from FERC shows that generous financial incentives remain available to companies seeking to expand the nation’s grid capacity.
Laurie H. Duhan and Sheldon Switzer
Is development of retail choice compatible with best-priced standard-offer service for smaller customers? Conflicting policy priorities threaten to distort Maryland’s retail energy markets.
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.
Rate caps have squelched competition in Pennsylvania.
The prolonged period of capped rates in Pennsylvania—years longer than in any other state—has produced some benefits and some drawbacks. On the plus side, due largely to the rate caps, electricity costs in the Commonwealth have fallen from 15 percent above the national average in 1996 to below the national average in 2007. This has been a significant benefit, but a temporary one that many have taken for granted.
Volatile markets create investment openings.
(June 2008) As fossil fuel prices continue increasing and alternative energy gathers momentum, the energy and utility industries can expect to see continued interest from private-equity firms. Over the last five years, record levels of private-equity investments have been used to buy power plants, as well as other utility assets and energy product manufacturing facilities. These once-overlooked industries suddenly are hotspots for private-equity investment.
New Models for Energy RD&D: A new ‘Clean Energy Institute’ could lead the industry’s war on climate change.
Clean-energy R&D needs better funding and leadership to meet aggressive greenhouse-gas emissions reduction targets. But how does the industry get there, and what management model best suits achieving such lofty goals? A new ‘clean-energy institute’ might be the answer.
A new theory on capacity markets and the missing money.
On Wednesday May 7, FERC will host a conference in Washington, D.C. that might prove extraordinary. The commission staff promises not only to review the forward capacity markets now operating in New England and PJM—each a story unto itself—but also to discuss a new rate-making theory that has come virtually out of nowhere and which proposes to help solve the notorious “missing money” problem.
Why many state regulators still have qualms about endorsing smart meters.
A year ago, in its formal investigation of state policy on smart meters, the Florida Public Service Commission conceded that while three of the state’s five major investor-owned electric utilities offered an optional time-of-use rate to residential customers, participation in fact remained “typically quite small,” averaging only about 1 percent.