NRG Energy

Nuclear vs. IGCC

Next-gen technologies race to dominate the big build.

New nuke plants will take at least eight years to complete, while the coal that powers new IGCC plants is no longer cheap. Regulatory and market obstacles confront both technologies, just as they emerge from the starting gate. Which type of plant will win the future?

2007 CEO Forum: Greenhouse Gauntlet

Tackling climate change is a monumental challenge. Power-company CEOs discuss long-range plans for a climate-friendly energy economy.

Seven CEOs—from Exelon, Great Plains Energy, National Grid, NRG Energy, Duke Energy, FPL Group, Great River Energy—explain how global warming is affecting their customers, shareholders, and employees.

Power-Plant Development: Raising the Stakes

Duke Energy’s Jim Turner and other utility executives weigh the odds on billion-dollar bets.

The heavy investment required for new generation technologies clearly is a global phenomenon, but global-resource competition to build power plants is making power-plant development more expensive—and may even limit the number that any one utility in any one country can develop.

Penalty Shot

An interpretation of FERC’s first application of EPACT.

At its open meeting on Jan. 18, 2007, FERC unanimously approved settlements with five electric utilities for a total of $22.5 million and other considerations. This action answers some important questions that energy market participants have been asking. In particular, it helps market participants connect some important dots regarding the regulatory landscape in which they must operate, but it also raises important questions that market participants would like answered.

People

(February 2007) The Electric Power Research Institute appointed Bryan Hannegan vice president for environment research and development. PNGC Power named John Prescott senior vice president of power supply. Nora Mead Brownell joined the Comverge Inc. board of directors. The Midwest Independent Transmission System Operator Inc. announced the election of two new members to its board of directors: Michael J. Curran and Eugene W. Zeltmann. And others...

Duke's Risky Spin

Lackluster interest in Duke post spin-off bodes ill for the “pure play” electric utility.

It was the most anticipated energy deal in the New Year, but not for the usual reasons. The spin-off of Duke Energy’s natural-gas business into a stand-alone company, Spectra Energy Inc., peaked interest because the transaction was to have marked the vindication of the so-called “pure play” electric strategy. The deal also has captured attention because the spin-off represented a divestiture strategy that until now hasn’t been universally embraced, with gas assets still seen by some utilities as part of core operations.

America's Resource Mix

Wind gains, but won’t soon alter the fuel mix.

Some power markets may be seeing possible signs of recovery. Spark spreads appear to have bottomed out, and reserve margins have begun to fall in some markets. As Figure 1 shows, recovery is uneven, with many regions still experiencing excess supply and a few regions with peak reserves under 10 percent.

Power Plant Sales: Valuing Optionality

Market risks and volatilities are driving asset values higher.

About 10 percent of the power-generating capacity in the United States has changed hands in the past three years. How buyers factor the variables and predict the future will distinguish winners from losers in the evolving power-generation industry.

People

New Opportunities: Southern Nuclear Operating Co. announced that its board of directors elected Joseph (Buzz) Miller as senior vice president of nuclear development. Miller is currently the vice president of government relations for Southern Co.

People

(August 2005) President Bush nominated Joseph Kelliher to chairman of the Federal Energy Regulatory Commission. Xcel Energy named Richard C. (Dick) Kelly CEO. And others...