How customer satisfaction drives returns on equity for regulated electric utilities.
Data and experience show that serving customers well translates into better rate case outcomes. Conversely, poor performance starts a downward slide. J.D. Power and Associates research shows the correlation between customer service and financial returns.
Green investments require bulletproof financing.
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.
Volatile markets are causing delays, but most deals are moving forward.
Although problems in the power business grabbed the headlines early this decade, the industry now seems fundamentally strong. In contrast to their ratings of banks, rating agencies appear to have recently upgraded more of the electric sector than they have downgraded. It remains a strong investment grade, usually BB or BBB. For an index of 68 electric utilities, the debt-to-equity ratio averaged only 55:45 and return on equity exceeded over 13 percent through January.
Does the Clean Air Act require the agency to consider the most low-emission coal plant technologies in permitting new plants?
Why doesn’t its interpretation of the Clean Air Act consider the most low-emission coal plant technologies?
Market-Power Tests: A review of FERC’s market-based rate (MBR) screens, from theory to application.
FERC’s market-power screens have been tested and found wanting in some areas. The author examines the screens’ strengths and weaknesses, then proposes future solutions.
Allegheny Energy announced the election of two vice presidents. , vice president for corporate development, became vice president of Allegheny Energy Inc. , deputy general counsel, became a vice president of Allegheny Energy Service Corp. Dailey joined the company in 1991, and Burke joined in 1999.
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Pancakes for Breakfast?
Two new transcos wake up to a stack of protests.
With the first deadline only a month away, electric utilities have launched trial balloons before filing plans at the Federal Energy Regulatory Commission for regional transmission organizations (RTOs).
The Midwest ISO struck a deal with utilities from low-cost states, but it may backfire.
Why should low-cost states get excited about handing over a chunk of their utility assets to an independent system operator (ISO) or other qualifying regional transmission organization (RTO)?
They might buy in if the ISO offers enough of an incentive.