Will 2007 be remembered as the year of the turnaround? Several new CEOs with bold transformation programs took top spots in our third annual ranking.
(September 2007) Consistent performance over time is the Holy Grail of corporate management, and a focus of many of the executives who made this year’s ranking. Who returned to the list, and who fell off? And more important, why?
The New Jersey Board of Public Utilities finds incentive programs may be a better way.
Jeanne M. Fox, Frederick F. Butler, Nusha Wyner, and Jerome May
New Jersey regulators say they have found a way to achieve conservation objectives while maintaining efficient operations, all without placing additional risk on consumers. How did they do it?
Some say the five-year love affair with the industry is at an end.
Jean Reaves Rollins and Richard Stavros
Analysts: Down on utilities. Is the party over? That’s the tough question posed in a research note by Wachovia equity research analyst Samuel Brothwell.
Some recent utility rate proceedings cast doubt on new ROE models and “risk adders.”
Our annual return on equity (ROE) survey broadly shows a continuing decline in the level of debate over issues specific to restructuring of the electric market. It also reveals a subtle shift back to investor requirements and overall business risks faced by regulated companies.
Can utilities simultaneously manage rising costs and pressing capital investment needs?
Johannes P. Pfeifenberger
Does the utility industry have the financial strength sufficient to meet the combined challenges of: (1) sharply increasing and highly volatile fuel and purchased-power costs; (2) significant capital investment requirements; and (3) rising interest rates?
To the Editor:
In “Rate-Base Cleansings: Rolling Over Ratepayers” (November 2005, p.58), Michael Majoros urges state public utility commissions to recognize a refundable regulatory liability for past charges to ratepayers for non-legal asset retirement costs.
Incentives for transmission investment could boost postage-stamp pricing over license-plate rates.
FERC proposed a new set of regulations, under the new section 219 of the Federal Power Act, explaining in broad outline how it might approve generous financial incentives for new investments in transmission—incentives once dubbed as “candy.” As of mid-January, the new NOPR had spawned more industry comment than just about any other FERC proposal in recent memory.
Total shareholder return can not only be a measure of past performance, but it can be harnessed as the prime touchstone for planning future performance.
Tim Gardner and Eric Spiegel
TSR is a paradox among financial metrics—dominant in assessments of past performance yet peripheral in plans for future performance. This paradox can be resolved.
Ratemaking Special Report: Survey respondents weigh in with needed actions.
The utility regulatory process is prone to controversy, given the inherently adversarial roles and varied viewpoints among the utilities, regulators, and other stakeholders. Oft-heard pleas of "why can't you just see this issue my way" or "can't we all just get along" underscore the deep-seated frustrations of utility leaders and regulators in trying to find a common ground for addressing crucial issues surrounding the formulation of business strategies, establishment of responsible financial goals, and setting of operational performance standards for the regulated gas and electric distribution utility segments of the energy industry.
Ratemaking Special: A survey of recent retail rate cases for electric and gas utilities.
The results of annual survey of rates of return on equity authorized for major electric and natural-gas utilities—based on a sample of the retail rate cases conducted by state public utility commissions—show a vibrant and perhaps growing interest in traditional rate-of-return regulation.