Interview by Richard Stavros
“I think it is my job as a leader to make sure that our values are always lived up to even when [they] conflict necessarily with our vision. That is what people look for at the end of the day. A leader’s role above all else is to make sure the truth is respected.”
“Hedge funds … are unregistered private investment partnerships, funds, or pools that may invest and trade in many different markets, strategies, and instruments (including securities, non-securities, and derivatives) and are NOT subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in Hedge Funds.”1
Banks are reshaping the energy-trading landscape. When the dust settles, utility companies will face different strategic horizons.
Utility executives face volatile energy markets, skyrocketing fuel prices, and changing federal energy policies. How are utilities benefiting from the turnaround in energy trading?
FERC says it won’t ‘change’ the native-load preference, but don’t bet on it.
When FERC opened wholesale power markets to competition a decade ago in Order No. 888, it codified a system for awarding grid access known as the pro forma Open-Access Transmission Tariff (OATT), founded on physical rights, and on the fiction that electrons travel along a “contract path.” Should the commission “tinker” with the OATT, making only surgical changes to make it current? Or, do events instead warrant a complete overhaul?
FERC mulls rival plans at the last minute, while on the West Coast, California gets into the game.
FERC, the ISO, and many other parties had seen no reason for further debate over the need for a location-specific capacity market. By limiting debate, FERC had foreclosed a raft of competing ideas. When the moment finally arrived for the oral argument at FERC, attorneys and witnesses attempted valiantly in the precious few minutes allotted each speaker to flesh out new ideas, and the commissioners struggled as well to keep up. This highly unusual situation made for a helter-skelter hearing, with new topics seeming to come out of the woodwork.
Change is the only certainty in today’s market.
Devrim Albuz and Mark Griffith
The past year has allowed the North American power sector to continue its recovery, but it has been a treacherous time for investing. Asset values, and the value of their associated debt instruments, are being driven in the short term by an extreme fuel market and in the long term by a back-to-basics mindset among electric utilities. Still, asset valuations in most markets are not yet at replacement costs, leaving current investors with a residual level of risk.
The CEO Power Forum: Not all utility CEOs are created equal...
Interviews by Richard Stavros
We talk with Cinergy’s James E. Rogers, DTE Energy’s Anthony F. Earley Jr., Constellation Energy’s Mayo A. Shattuck III, Xcel Energy’s Wayne H. Brunetti, FPL Group Inc.’s Lewis Hay III, and TXU’s C. John Wilder.
Solving the electricity credit malaise.
Todd W. Bessemer and Francis X. Shields
A monthly billing cycle results in exposures of up to 60 days’ settlement. Participant default is likely, and the potential loss from such an event is significant. Spot-market clearing can solve these problems.
The Environmental Protection Agency reviews how the multi-pollutant control concept is to work.
Misha Adamantiades, Linda Chappell, and Sam Napolitano
Currently, 132 areas do not meet the new National Ambient Air Quality Standards for fine particles or ozone, affecting some 160 million people, or 57 percent of the U.S. population. What efforts are under way by the EPA to bring these areas into compliance?
A review of the ongoing evolution of market design.
While it appears that capacity markets are here to stay, there is little consensus regarding the best design. Markets in the United States are in a state of flux, with debate raging over many different capacity market pricing schemes. While the winning recipe has yet to be selected, it is likely that participants in certain markets will witness significant changes.