[BETA] Fortnightly

(March)

When the goals of a utility and its host community aren’t in sync, breakups happen.

IIt’s ironic that in today’s market, as the cost of hedging against commodity price increases has declined, support for utility hedging programs has sunk to a historic low. The ideal time to hedge is when prices are low and markets are relatively calm, because that’s when hedging costs and risks are the lowest. Conversely, waiting until prices rise and markets become volatile will expose customers to higher costs. Convincing regulators to approve hedging programs now will require a collaborative approach to educating and enlisting support from stakeholders.

(July 2011) Williams Partners L.P. expands Transco transmission lines; Google to provide fiber optic Internet service for Kansas City, Mo.; Constellation Energy picks Lynxspring Inc.; plus contracts and developments involving Servidyne, EnerNOC, Siemens Energy and others.

New federal policies have opened the gates to utility investments in renewable generating plants. Some states, however, still make it difficult for utilities to put such assets into the rate base. Executives at Duke, OG&E, PG&E and Xcel Energy discuss challenges and opportunities affecting their renewable investment strategies.

Many green power customers benefit from long-term fixed prices. The most effective programs recognize the value of this price hedge—and fairly exempt customers from fuel cost adders in utility rates.

Utilities are turning to natural gas as a bridge fuel, and to support non-dispatchable renewables.

BY 2010, SOME $21.8 BILLION WORTH OF EMISSION control technologies will have to be installed at steam-generating plants to reduce emissions of sulfur dioxide and nitrogen oxide.

Increased costs at these plants will boost power prices. These higher costs and higher revenues will increase profits of the five least competitive companies will lose $1 billion.

Power companies must increasingly incorporate environmental factors into strategic planning.