Risk avoidance drives utility stock performance.
Jeffrey W. Miller, Michael Rutkowski et al.
Utility stocks historically have been a safe haven, a stable, long-term investment for widows and orphans. However, with banks collapsing and the economy falling into a recession, utility stocks as a whole recently have performed poorly, with our portfolio of 75 companies losing $200 billion in market value in 2008.
Left-coast lawmakers envision a greener America.
As the new U.S. government takes shape, at least one trend seems clear: California is taking over the country. Well, maybe not “taking over,” exactly. But leading.
New approaches account for the economic benefits of renewables.
Many green power customers benefit from long-term fixed prices. The most effective programs recognize the value of this price hedge—and fairly exempt customers from fuel cost adders in utility rates.
New geothermal approaches bring massive resources within reach.
Low-temperature closed-loop generators promise huge growth in geothermal power.
Financial incentives work, but beware potential pitfalls.
Forrest Small and Mitchell Rothman
The province’s renewable program was vastly oversubscribed. But was it successful?
Utilities consider imposing a retail surcharge to fund clean-tech R&D.
Utility CEOs debate the merits of a retail surcharge to fund clean-tech R&D.
New green mandates force portfolio planners to re-think their models.
Rob Cleveland and John Brown
Quantifying the impacts of renewable portfolio standards (RPS) on utility integrated resource plans (IRP) sounds straight forward—just add more wind, solar, hydro, biomass, etc., to the plan and everything should be good to go. The reality is not quite so simple.
Economic uncertainties raise doubts about utility returns.
Economic uncertainties are raising doubts over utility returns. Will regulators feel the need to consider broader economic effects when engaging in ratemaking? While reporting on this year’s rate cases, the author provides insight on what to expect as stock prices fall.
Prices between $50 and $80 a ton will trigger major market responses.
Victor Niemeyer and Lew Rubin
Whether in the form of a carbon tax or cap-and-trade regime, climate-change policy is coming and will have a profound effect on electric suppliers and consumers. EPRI studied the effects of high carbon dioxide prices on nine diverse Western generation companies and provides insight into the expected major market responses.
Network intelligence yields green returns.
Fred Wellington and Forrest Small
A more sophisticated delivery network can yield “carbon value” via zero or low-emission generation, T&D efficiencies and innovative market strategies.