A candid commentary on current topics in electric restructuring.
A no-holds-barred interview with the electric industry’s chief architect of wholesale electric market design.
Portfolio planning in the age of gas.
Michael T. Burr, Editor-in-Chief
PUCs are concerned that a rapid shutdown of coal-fired plants will start a full-tilt dash to gas—similar to the one that caused bankruptcies among independent power producers in the late 1990s and early 2000s. But this time around, ratepayers and not IPP investors will be stuck with the risk, if utilities rush to add all that new gas-fired capacity to rate base.
It’s a war out there — or rather, several of them. Fortnightly reports from the front lines of the conflict over U.S. energy and environmental policy.
It’s a war out there — or rather, several of them. Fortnightly reports from the front lines of the conflict over U.S. energy and environmental policy.
How customer satisfaction drives returns on equity for regulated electric utilities.
Data and experience show that serving customers well translates into better rate case outcomes. Conversely, poor performance starts a downward slide. J.D. Power and Associates research shows the correlation between customer service and financial returns.
Utilities are enjoying some of the best financing terms anybody’s ever seen. Is the party winding down?
Conditions are ideal for utility financing—but not forever. Although interest rates remain low, policy changes weigh on capital structures.
Michigan chafes over regional grid planning, providing a policy lesson for the feds.
High prices have turned Michigan against regional planning -- a possible foretaste of what to expect under FERC Order 1000.
PJM and MISO ran from the altar once before. Now there’s talk of a shotgun wedding.
Utilities in the Midwest ISO want greater access to sell into PJM’s lucrative market. But that might require a virtual merger of the two RTOs — a move rejected seven years ago as too costly, and perhaps still impractical today.
Lacking regulatory oversight, financial hedges turn into risky speculation.
Many utilities engage in hedging to protect customers from price spikes. But unless regulators are involved in crafting and monitoring these programs, they can turn into speculative ventures that put ratepayers at risk — for the benefit of shareholders.
Re-starting the Big Build calls for revisiting cost-recovery mechanisms.
By Sherman Elliott and Ralph Zarumba
As the industry resumes major capital-spending programs, utilities and their stakeholders are rightly concerned about the effects on prices. Traditional regulatory approaches expose utilities to risks and costs, and can bring rate shock when capital spending finally makes its way into customers’ bills. Pre-funding investments can provide a smoother on-ramp to bearing the costs of a 21st-Century utility system — but it also raises questions for utilities to address.
Bold plan for independence, or more partisan overreach?
By Michael T. Burr, Editor-in-Chief
The Republican nominee’s energy plan doesn’t say much about electricity or natural gas. But what it does say should sound familiar to anyone who’s followed energy policy for more than four years.
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