Despite a favorable outlook for utility finance, cost pressures are straining rate structures.
Utilities are bringing monumental capital-expenditure plans before rate regulators just as they’re dealing with a barrage of rising costs—for fuel and other commodities, as well as labor, pension-fund obligations, and interest payments. Ten energy-finance luminaries elaborate on the industry’s fortunes.
Sweating the details for 2009.
The Electric Reliability Council of Texas (ERCOT) introduced wholesale market competition in 1996, following the organizational change of ERCOT from a pure reliability council to an independent system operator (ISO) the same year. This makes ERCOT one of the earliest adopters of competitive electric markets. Stakeholders and regulators in ERCOT are trying to work out the details of implementing this market.
The 2005 Act, designed to streamline projects, may fall short of that goal.
The Energy Policy Act of 2005 was supposed to streamline the siting process and provide a federal “trump card” for projects delayed at the local level, but it is far from clear whether these goals have been, or will be, achieved.
The latest resistance to deregulation is built on a foundation of lies.
A motley assortment of naysayers and recalcitrants continue to oppose competitive electricity markets around the world. But the alternative to markets is centralized command economics—a discredited concept that deserves to be consigned to the dustbin of history.
What we can learn from retail-rate increases in restructured and non-restructured states.
Significant rate increases in many retail-access states have regulators and policy-makers asking whether customer choice and utility restructuring have failed, and what they can do about these rate increases.
Do states have any rights in siting LNG terminals?
Natural gas often is called the world’s most perfect fuel. And since it can be transported as liquefied natural gas (LNG), and, as LNG, is projected to meet 20 percent of the country’s natural-gas requirements by 2025, the construction of onshore LNG terminals is crucial for the United States. Siting of LNG terminals is contentious as states and a range of stakeholders challenge and seek to frustrate FERC’s permitting authority.
Has restructuring succeeded on either continent?
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.
Why U.S. public utility commission-style ratemaking has becomes a hit overseas.
What are some approaches to regulation adopted in recent decades by national governments, and the implications for management making international investment decisions?
To what extent can the EPA force utilities to update aging fleets with expensive pollution-control technology?
The U.S. Supreme Court soon will issue a potentially far-reaching decision in a case involving Duke Energy Corp. What’s the upside for the electric industry?
Utilities should plan for U.S.-wide CO2 emissions restrictions that will be more effective than state efforts.
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.”