[BETA] Fortnightly

Lenders know there are billions of dollars of weak financial assets in the market, such as securities backed by bad mortgages. The problem is no one knows who is exposed at what level to those weak financial assets. This causes a lack of confidence in the lending industry, and a credit crunch that — if unabated — could cause a recession.

Tax incentives, renewable portfolio standards, and the creation of renewable-energy credits and carbon constraints are no longer separate considerations when assessing renewable-energy projects. The convergence of these economic considerations will affect the value proposition for every potential generation investment in the United States.

The Supreme Court’s recent decision empowering the Environmental Protection Agency to regulate carbon dioxide shifted momentum toward a mandatory program to cap greenhouse-gas emissions. Eventually, there will be huge implications for power generation.

Utilities need to begin planning for U.S.-wide emissions restrictions that will be more effective than state efforts. Such restrictions are no longer a matter of “if,” but “when.”

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.

To turn efficiency investments into a growing revenue source, strong programs, in conjunction with effective monitoring and verification, are the keys to success.

Exclusive interviews with CEOs at five regional independent transmission system operators: Phil Harris, at PJM; Gordon van Welie, at ISO New England; Yakout Monsour, at the California ISO; Graham Edwards, at MISO; and Mark Lynch, at the New York ISO.

How will utilities in the next 10 years manage a multi-billion-dollar infrastructure buildout, higher interest rates/cost of capital, diminishing free cash flows, state renewable mandates, and political pressures to keep rates or power prices low, all while complying with carbon emissions programs that emphasize higher-cost fuels? Meeting the challenges may depend on whether a national carbon program that regulates carbon emissions is established.

GREENHOUSE-GAS EMISSIONS

The states are getting into the act on greenhouse emissions, and the power industry is getting more proactive. What policy measures are appropriate?

A growing number of U.S. utility companies have come out in favor of federal mandatory limits on emissions of carbon dioxide (CO₂) from their facilities.