Diversified companies lead (and the globals lag) over the past five years.
James Coyne and Prescott Hartshorne
Business & Money
Winners and Losers:
Diversified companies lead (and the globals lag) over the past five years.
The unbundling of services and companies in the electricity and natural gas industries have created unprecedented opportunities to reinvent the traditional integrated utility model, with a broader array of attendant risks and rewards. But this past year was clearly one of retrenchment and strategic soul searching, allowing an opportunity to re-examine the sector for winning business formulas.
The industry requires new analytical tools to incorporate the realities of today's higher risk operating and investment environment into the equity allowance process.
Mark Ciolek, Wallace Jones, and Dr. William Wilson
Commission Watch
The industry requires new analytical tools to incorporate the realities of today's higher risk operating and investment environment into the equity allowance process.
Several issues need to be addressed before municipals and co-ops participate significantly in regional transmission organizations.
Lisa G. Dowden, Ben Finkelstein, and David E. Pomper
FERC Docket No. RT01-86-000, filed Jan. 16, 2001
PUC Oversight: Panacea or New Problem?
Docket No. ER97-2353-000, Opinion No. 447, 92 FERC ¶61,169, Aug. 17, 2000
Docket No. EL00-91-000, 92 FERC
Docket Nos. EL00-46-000 et al., 91 FERC ¶61,276, June 14, 2000.
= {Operating Profit - Cost of capital} x capital Capital
= (Return on capital - cost of capital) x capital.
S.R. Rajan, Ph.D.
An alternative measure of performance - not based on dividends, earnings growth or P/E ratios.
How to place a value on a utility company? That is the question.
The traditional models no longer work very well. Dividend discount models will not work well if utilities cut dividends and buy back stock to return capital to the shareholders. Earnings growth offers no reliable performance gauge either, as utilities acquire or divest large amounts of capital. Restructuring charges often become necessary to shift resources to their best use.
State PUCs
Electric Standard Offers. Connecticut OK'd a regulated standard offer distribution rate of 10.84 cents per kilowatt-hour for United Illuminating Co. The rate included subcomponent rates:
Gen. Shopping Credit 4.52 cents
T&D Regulated Service 3.89 cents
Systems Benefit Charge 0.17 cents
Compet. Transition Charge 1.91 cents
Conservation Funding 0.3 cents
Renewable Energy Funding 0.05 cents
The T&D charge was calculated without backing out unbundled retail transmission subject to FERC jurisdiction. Docket No. 99-03-35, Oct.
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