[BETA] Fortnightly

The power grid has been slow to embrace renewable energy sources. In order to allow renewable energy sources to evolve into a solution rather than a headache, new tools and processes will need to be developed to forecast and control renewable production capabilities.

Originally developed to compensate U.S. electric utilities for regulatory assets rendered uneconomic by deregulation, so-called “stranded-cost” securitization techniques are finding new applications. To date, utilities have issued approximately $40 billion of stranded-cost securitizations. That number could increase dramatically if the industry applies well-tested securitization techniques to the extraordinary costs it faces in the future.

According to a telephone survey commissioned by the National Council on Competition and the Electric Industry, consumers are happy with their electric suppliers, but want the companies to improve their environmental records.

Many of the 1,307 adults surveyed also would like to see electricity prices improved. Two-thirds, in fact, think prices are too high.

Nearly all consumers (96 percent) feel it's important that electric companies be environmentally responsible. Some 92 percent say that preserving the environment is important, even if it costs more.

Electric industry restructuring is progressing at a rapid pace. Across the country, states are moving ahead to encourage retail competition. Two states have allowed retail wheeling experiments (Michigan and New Hampshire), utilities are proposing them, and over 20 states are studying the issue. Back in Washington, Congress is examining legislation to amend the Public Utility Holding Company Act (PUHCA).