Does the lack of long-term pricing undermine the financing of new power plants?
J.P. Pfeifenberger and S.A. Newell
The PJM Interconnect’s Reliability Pricing Model generally has succeeded in attracting and retaining low-cost generation and demand resources to maintain resource adequacy. But sluggish demand and low prices have weakened the market for long-term capacity contracts. Suppliers aren’t willing to lock in current low prices, and buyers don’t want to pay more for future certainty. Is the market dysfunctional, as some state lawmakers suggest, or does the lack of long-term contracts indicate a rational balance of supply and demand?
(September 2011) Walgreens to install eVgo charging stations at 800 sites; Siemens and eMeter team up in Maryland; Glasgow muni installs Elster meters; ABB completes Mincom acquisition; JDSU acquires Quanta-Sol PV technology; Survalent installs SCADA system at tidal power project; PECO selects Telvent; plus announcements and contracts involving Trilliant, Sensus, S&C Electric, Navigant, Ernst & Young, PSE&G, Portland General Electric and others.
Out of market means out of luck—even for self-supply.
When the U.S. Federal Energy Regulatory Commission issued its so-called ”MOPR“ decision in April 2011, approving a minimum offer price rule (or bid floor) for PJM RPM capacity market — and then on the very next day did much the same for New England’s FCM capacity market — FERC did more than just prop up prices. Instead, it created a nightmare scenario for utilities that still own their own generation. These utilities, who choose to “self-supply” with their own plants, rather than buy capacity from either the RPM or FCM, adequacy rules, could now be forced to pay twice for capacity — if their own plants are deemed inefficient or uneconomic.
(September 2010) Duke names chief communications officer; PG&E appoints integrated DSM vice president; Entergy promotes four execs; Puget Sound Energy’s Kim Harris to replace Steve Reynolds; Richard Riazzi becomes CEO of Duquesne Light; Fred Butler joins Opower advisory board; Tom Kuhn to Control4; plus personnel changes at California ISO, AEP, Chesapeake Utilities, Southern Company, Exelon and others.
An emerging model for green power.
Stephen B. Pearlman and Ryan J. Scerbo
Certain New Jersey counties have undertaken a regional, public-private partnership approach to developing renewable energy projects for local government buildings. Local governments generally include municipalities, school districts, counties, and municipal or county or other regional sewerage or water utilities, depending on applicable state law.
FERC fights for the green-grid superhighway—even if Congress won’t.
The Senate’s deadlock over carbon cap-and-trade legislation has not deterred FERC Chairman Jon Wellinghoff from an agenda bent on promoting renewable energy and fighting climate change. Last fall, even as Congress dithered, FERC launched a landmark initiative that likely will lead to sweeping new rules for expanding the nation’s electric transmission grid, grounded on Wellinghoff’s belief in wind, solar, and green power resources.
Rewards, challenges and options for rate-based investments.
Paul Alvarez and Benjamin Hodges
Utilities traditionally have met renewable portfolio standards with power purchases from IPPs. But new approaches are allowing utilities to build their rate bases with investments in solar generation.
The 40 Best Energy Companies
(September 2009) The industry’s best companies are weathering the financial storm reasonably well, with the F40 delivering equity returns in the 14-percent range for fiscal 2008. However, falling sales and rising costs are putting heavy pressure on balance sheets—and on regulatory relationships. Companies that balance customer value and shareholder value will be most likely to thrive in the new normal.
N.J. BPU enacts new rules to insulate utilities from holding companies.
When Congress repealed the Holding Company Act, it gave states greater authority to regulate utilities. New Jersey picked up the baton and enacted rules to protect ratepayers.
NARUC decries conditions on states for federal grants.
Utilities are leaving no stone unturned in their search for ways to save electricity. Federal incentives will support new technologies and projects, but can those incentives overcome structural barriers that stand in the way of major efficiency improvements? Fortnightly's editors explore challenges and opportunities arising from the new efficiency mandate.