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.
How will carbon-emissions policies affect the generation fleet?
Any climate policy is almost certain to target the electric-power industry, which is responsible for about 38 percent of U.S. CO2 emissions. Said policy especially would affect coal-fired power plants, which contribute about 82 percent of the electric power CO2 total. How would various policy options change the economic value of current and proposed generation assets?
(May 2007) The board of directors of Maine & Maritimes Corp. selected Brent M. Boyles to become the organization’s next president and CEO. Consumers Energy has named Bruce Rasher manager of renewable energy. FPL Group Inc. announced that Oliver D. Kingsley Jr. has been elected to the company’s board of directors. Pacific Gas and Electric Co. named Des Bell as utility chief of staff and vice president.
Will the environmental lobby be even-handed with utilities?
Richard Stavros, Executive Editor
They were heralded as “landmark” or “watershed” moments in the industry—a series of deals completed during the last few months in which utilities sat down and negotiated with environmentalists on coal-plant development. While many in the industry had hoped this was the start of a positive new trend, some environmentalists have double-dealt across state lines, arguing against coal plants in one state and then negotiating for their development in the other.
Can markets co-exist with renewable mandates?
Part way through the Feb. 27 conference on electric competition, it was so quiet you could hear a hockey puck slide across the ice. No, hell had not frozen over. Rather, it was Commissioner Marc Spitzer, who had found a clever story to ease the tension and allay fears that FERC somehow might want to undo the sins of the past, and give up its dream of workable markets for wholesale power.
Has restructuring succeeded on either continent?
Terrence L. Barnich & Philip R. O’Connor, Ph.D.
The era of polemics about electric competition is nearly over. It’s time to compare the relative performance of competition and traditional regulation as these two established models operate side-by-side.
Experts predict the top issues that utilities will have to weather this year, and beyond.
Richard Stavros & Michael T. Burr
A soup-to-nuts preview of the next 12 months that touches on spinoffs and interest rates, climate change and New Source Review, the future of nuclear, investor returns, and natural-gas price volatility.
Part 1 of a 2-part article explores new technologies most likely to influence competitive success.
When fighter pilots list the advantages of one combat aircraft over another, they do not speak primarily of speed. Rather, they refer to the ability of one aircraft to “turn inside” another, to negate other aspects of performance with a superior turning radius. For the utility industry, fundamental changes in technology, markets, or regulatory requirements can “turn inside” the ability of companies to respond, as long-lived investments and choice of fuels lock them into their strategic choices for decades. This article proposes ways for utility leaders to understand strategic risk better and manage it more effectively.
An analysis of current valuation trends explains why some assets command better values than most.
Devrim Albuz and Gary L. Hunt
Average North America power-plant asset value is at $725/kW.1 Compared with our winter 2005-2006 analysis, this figure has barely changed; however, we have seen significant value movements based on region, fuel, and asset types.
(January 2007) PNGC Power promoted Tom Haymaker to vice president of power supply. Calpine Corp. announced that Larry B. Leverett joined the company as senior vice president, gas trading. ITC Holdings Corp. announced that William J. Museler has been appointed to its board of directors. Sierra Pacific Resources announced that William D. Rogers has been named to the new position of vice president, finance and risk, and Corporate Treasurer. And others...