Green energy mandates might overburden gas pipelines.
By Diane A. Rigos, Boris L. Shapiro and Richard L. Levitan
Market rules could evolve to compensate gas suppliers for pressurizing pipelines when needed on short notice. Enhanced ancillary services will require innovative strategies using line pack in interstate pipelines and stepped up communication among gas and electric market participants to preserve reliability objectives in gas and electric markets.
What California can teach FERC about transmission planning.
The California ISO is going its own way with its proposal for transmission planning, virtually ignoring FERC’s proposed rules on transmission planning and cost allocation. California wants to bring method to the madness of developing transmission projects, and its approach has raised hackles in the industry. The dispute defines the battle over America’s most attractive market for rate-regulated investment.
How the new standards affect utility balance sheets.
Bente Villadsen, Amit Koshal & Wyatt Toolson
Over the next year (or years), companies in Canada and the U.S. will make the transition towards adopting International Financial Reporting Standards (IFRS). These standards will have a substantial effect on the reporting requirements and financial disclosures of regulated companies. Utilities are preparing their accounting processes to meet a new regulatory standard.
(December 2010) Steven Specker joins Southern Company board; Chesapeake Utilities names Michael McMasters CEO; Ethics inquiry leads to dismissals and new president at Duke Indiana; plus executive management announcements at American Transmission, Oncor, FirstEnergy, Alliant, NYISO, Gridwise Alliance, the Organization of MISO States, and more ...
Federal policy trumps state siting authority.
Catherine R. Connors et al.
In some states, transmission projects have slowed to a halt as regulators attempt to substitute their own need determinations for those of RTOs. The federal framework encourages cooperation, but Congress and the courts have given FERC clear authority over interstate transmission systems.
Are subsidies the best way to achieve smart grid goals?
FERC has proposed that wholesale energy markets should subsidize load reductions with full LMP (locational marginal price), without deducting the customers’ retail savings. Such a policy could distort the market, and other solutions might achieve the same objectives more efficiently.
2010 Law & Lawyers Report
The U.S. utility industry has never faced a more uncertain legal and regulatory landscape. From FERC demand-response pricing to state ratemaking disputes, legal trends and decisions are reshaping the power and gas market. The industry’s top legal minds provide strategic counsel. By definition, a battlefield is an ugly place. Conflict creates chaos, uncertainty and danger.
FERC modifies its enforcement guidelines.
FERC’s revised policy provides greater predictability and transparency in the commission’s approach to determining civil and criminal penalties under its statutory authority. Despite a more systematic framework, however, FERC retains discretion to assess penalties based on the facts of individual cases.
(November 2010) DTE names Gerard Anderson CEO; Arthur Meyer ascends to general counsel at Dayton Power & Light and DPL; Exelon names new executives, including Calvin Butler, s.v.p. of human resources and Susan Weiss, v.p. of commercial operations; Deloitte Center for Energy Solutions appoints former FERC Commissioner Branko Terzic executive director, and adds former FERC Commissioner William Hederman to its energy and resources group; other executive changes at OGE Energy, Ameren, Chesapeake Utilities, El Paso Electric, Otter Tail, ISO New England, EPRI, AGA, NIST, and more.
Wall Street reform hits the utility business.
Jonathan W. Gottlieb and Nathan E. Endrud
Utilities, long accustomed to regulation by FERC and state PUCs, now face extensive regulation of their energy trading activities by the Commodity Futures Trading Commission (CFTC). Under the Wall Street Reform and Consumer Protection Act—commonly known as Dodd-Frank—signed into law July 21, 2010, energy swap contracts may be subject to new capital, margin, reporting, business conduct, and other requirements that likely will increase their trading costs and create new compliance concerns.