Raising the stakes in RTO markets.
Generators and demand-response providers are reaping rewards in forward capacity auctions, causing suppliers to go shopping for the most lucrative markets. Now the Midwest ISO is trying to catch up, by proposing its own auction for years-ahead resource bids. But does RTO shopping serve the interests of customers, who are legally entitled to rates that are just and reasonable? Why are some state policy makers advocating a return to old-school RFPs for long-term contracts?
Burbank Water and Power selects Tropos Networks for smart grid project, Survalent Technology installs SCADA system for Pearl River Valley Electric Power Association, Gemma Power Systems signs contract with Bishop Hill Energy, American Superconductor selects subcontractors for the Tres Amigas SuperStation transmission hub in Clovis, N.M., and more ...
Waste fuels struggle despite coal’s decline.
Fuel supply might be the biggest barrier to scaling-up biomass power generation, but it’s by no means the only problem. Utility projects to repower coal-fired plants face permitting challenges, ballooning technology costs and strained economics. Some owners are giving up the fight.
(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 ...
Utility deals resume after 18 months of austerity.
Utilities are taking advantage of a sweet spot in the capital markets, pre-funding and refinancing at record low rates. But cheap money won’t resolve overhanging uncertainties preventing cap-ex projects and M&A deals. Greater certainty in America’s economic and policy outlook will clear a path for strategic change.
Do regulatory and economic trends favor industry mergers?
Now that some new major transactions have emerged, and financial recovery appears slowly moving forward, utility mergers are beginning to appear likely again. Although regulatory hurdles still impede new transactions, some changes at the federal level are reducing concerns about market power and competition. Plus, changing market conditions and new compliance requirements are strengthening the case for scale economics.
(October 2010) Southern Company rearranges executive suites upon Ratcliffe’s retirement; Constellation hires new chief marketing officer; TECO names Ramil CEO; plus executive announcements at Black Hills Corp., Cleco, Tres Amigas, Chesapeake Utilities, Exelon, Vectren, and more.
Will shifting winds bring consolidation?
A spate of newly announced deals, including Allegheny Energy’s proposed $9.27 billion acquisition of FirstEnergy, plus PPL’s takeover of E.ON US for $6.73 billion, has left the utility industry cautiously optimistic for a revival of M&A activity.
ABB buys Ventyx; Powerspan and WorleyParsons CO2 capture test results; Honeywell lands Progress Energy contract; Opower releases customer engagement platform; HECO picks Siemens for smart-grid stimulus project; and MORE.
(June 2010) SueDeen Kelly joins Patton Boggs as partner; Chairman Pat Wood III elected to First Wind board; CMS names Mamatha Chamarthi as the company’s first CIO; Executive changes at Centerpoint, Constellation, Duke, FirstEnergy, TransCanada, Tres Amigas, UniSource; Black & Veatch, Navigant; EPRI, NARUC, New York ISO, and more.