Strategy & Planning

Interest Rates and Fiscal Armageddon

How to prepare for killer capital costs on future power-plant builds.

Mark Twain once wrote: “A banker is a fellow who lends you his umbrella when the sun is shining and wants it back when it starts to rain.” If utility finance executives aren’t careful, they might find themselves caught in the rain without an umbrella.

Byline: 

Richard Stavros

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The Bigger CIS Picture

Data Mining and Warehousing: Many utilities have no ability to turn raw customer information into significant insights about their business.

The customer-information system (CIS) is the system of record for both customer and meter data, and in combination with asset databases, these information repositories comprise the lifeblood of every utility. They usually are not tuned for analysis or for easy reporting, so a single view of the customer and the business processes surrounding the customer does not exist in most of the systems in use today. Many utilities, as a result, are data rich but information poor. Enter the Data Warehouse.
Byline: 

Bill Barnett

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Europe: Picture of a Stalled Competitive Model

Several hurdles remain to further liberalization and full competition in the electricity sector.

Two major trends can be observed in Europe’s electricity sector. First, the increasing importance of private-sector participation in a sector that was traditionally viewed as belonging to the state. The second major trend in Europe is that of the massive amount of merger and acquisition activity across the continent. At the same time, several hurdles remain to further liberalization and full competition in the European electricity sector.
Byline: 

Bridgett Neely & A.J. Goulding

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Corporate Risk: What Does Management Really Know?

A short list of questions that every board member and senior manager should be able to answer.

“We pursue a disciplined approach to risk management" says the CEO of a major utility during the company's earnings call with analysts and investors. In this era of increased scrutiny over corporate governance, how can senior management and the board be certain that this statement is accurate, and where does the discipline begin?
Byline: 

Brett Friedman and Tim Essaye

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Betting on Broadband

Are consumer broadband over powerline (BPL) services enough to make the business case for utilities?

After years of development, technology to deliver high-speed data over the existing electric power delivery network has emerged in the marketplace. In some sections of Cincinnati and Manassas, Va., consumers now have an alternative to DSL and cable for broadband Internet access. It's real and it works.
Byline: 

Karen George

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IT Roundtable: The Digitized Grid

Data gathering and controllability offer the quickest path to reliability.

Technology leaders at Pacific Northwest National Laboratory, the Electric Power Research Institute, and the National Rural Telecommunications Cooperative present their visions of energy IT in the 21st century.
Byline: 

Michael T. Burr

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Merchant Power: Ratepayers Back At Risk

A review of power plant deals in 2004 shows that utilities are buying.

Whether evolution or devolution, the merchant deals done to date show movement to a familiar structure; ratepayers are back at risk. While ratepayers have benefitted from merchant plants, they also paid since competition began with PURPA in 1978, and many of the acquisitions put them at risk for future changes in power values and fuel costs.
Byline: 

Jeff Bodington

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Flexibility: Key to Success When Outsourcing Information Technology

In the utility industry's brave new world of deregulation, information technology (IT) (em and, specifically, "outsourcing" (em has acquired an entirely new meaning.

IT has become strategic. And important. So important that utility companies are seeking outside expertise to help them leverage technology to conduct business more efficiently, help grow revenues, and hone their edge in the new competitive world. Time has become an unaffordable luxury.

Byline: 
Paul Sweeny
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