Strategy & Planning

The Consumer-Centric Utility

Empowering Consumers while Managing Risk and Optimizing Assets

Electric utilities do not simply sell a commodity. They sell safe, affordable, reliable and clean electric service. The “Consumer-Centric Utility” business model provides a viable framework for utilities while enabling new products and services that meet growing consumer expectations.

Beware of Vertical Arrangements for Gas Procurement

Owning gas reserves benefits consumers?

Regulators should start with the premise that long-term contracting with an independent gas producer or middleman is preferable (e.g., with a marketer). Vertical arrangements pose a number of tough questions for state public utility regulators.

FERC Chasing the Uncatchable

Trying to fix mandatory capacity markets like trying to win at Whack-A-Mole, Part II

The proposals do not mandate participation in mandatory auction markets, much less try to set artificial floors on seller bids.

Remarkable Energy Careers: Jim Fama

We talked with Jim Fama, retiring and on his last day at EEI, about his remarkable career.

Jim Fama was the Edison Electric Institute’s vice president for energy delivery since 2002.

Expanding Deals, Shrinking Companies

After 20 years of consolidation, the industry looks distinctly different.

Today the focus has returned to building scale, as well as enhancing market access, financial stability, asset portfolio mix, and customer scale.

How Many Does It Take to Screw in a Light Bulb?

Organized markets will ensure the optimal number of bulbs are screwed in, at the marginal cost of bulb screwing.

How many utility commissioners does it take to screw in a light bulb?

Five. A problem for three-person commissions. Three commissioners to hear testimony on whether changing the bulb is in the public interest. One more commissioner to direct staff to write the decision and order, to screw it in. And a fifth commissioner to hear appeals, as to whether screwing it in is actually least cost.

How many utility rate managers does it take to screw in a light bulb?

A Five-Point Plan For The Next Wave Of Electricity Restructuring

The monopoly utility model was once expansive and revolutionary. Now, it is contracting and preservationist.

A plan for restructuring: Delivery service pricing reform; devolution of generation and re-allocating risk; stranded cost recovery; distributed resources neutrality; optimization of service offerings.

Are Utilities and Government Skimping on R&D?

The future of the energy sector and environment is at stake.

Public utility regulation has a role to play in stimulating R&D by energy utilities. Studies have confirmed that social returns on R&D are much greater than private returns, evidence supporting government involvement (e.g., via funding or performance) in R&D.