What happens when the Bush tax cuts expire?
Congress again is embroiled in another hyper-partisan food fight that threatens to blow up into a fiscal crisis. And once again dividend-paying companies like utilities are caught in the crossfire.
Positioning to win in the contest for scale.
The industry’s slow-and-steady pace of mergers seems to be picking up speed, as larger and well-positioned players overtake smaller and weaker targets. Realizing the greatest value from consolidation requires companies to assess their strengths and weaknesses and focus on performance improvement—both before and after a deal gets done.
A challenging year brings a change in the rankings.
Re-starting the Big Build calls for revisiting cost-recovery mechanisms.
As the industry resumes major capital-spending programs, utilities and their stakeholders are rightly concerned about the effects on prices. Traditional regulatory approaches expose utilities to risks and costs, and can bring rate shock when capital spending finally makes its way into customers’ bills. Pre-funding investments can provide a smoother on-ramp to bearing the costs of a 21st-Century utility system — but it also raises questions for utilities to address.
Integrating controllable demand into real-time, security constrained economic dispatch.
Historically, grid operators tapped into voluntary load reduction as a last resort for keeping the lights on. But now, smart grid technologies and dynamic pricing mechanisms bring vastly greater potential for using load as a dispatchable resource. Effective implementation requires advanced technologies—and also foresight in creating programs, policies, and market mechanisms.
Factoring customer-owned generation into forecasting, planning, and operations.
The long-predicted future of distributed generation is now becoming a reality. Customers increasingly are installing and operating behind-the-meter generation systems, creating challenges and opportunities for utilities. ConEdison’s experience demonstrates the dangers and challenges, as well as the opportunities for becoming partners with utility customers.
Policymakers and industry seek a formula to assure competitiveness and resource adequacy.
New Jersey’s bid to force prices downward in PJM’s capacity market not only raises the alarm about market manipulation. It also reveals a dilemma that’s preventing new generation from being built. Incumbent interests and political motivations make PJM less attractive to investment than it should be.
(July 2012) Thanks for your enlightening editorial about the problems of feed-in tariffs for photovoltaic installations and the distortions they are causing in cost responsibilities among electric utility customers. While these issues are an immediate and growing concern, an entirely different set of problems will emerge over the next decade as the share of renewables in total generation approaches the high levels being dictated by most regulatory authorities.
Hybridizing fossil plants with solar thermal technology.
Utilities are testing options for adding solar capacity to existing steam power plants. Concentrated solar thermal boosters increase plant efficiency and reduce emissions, while helping utilities to cost-effectively meet renewable mandates.
Can a disruptive technology change the electric customer experience?
North American energy utilities are investing billions to create a smart grid to enhance service for retail electric customers. The smart grid, a disruptive technology, will provide utilities and customers with access to information about how electricity is used that they’ve never had in the past. More importantly this information can empower customers to take ownership of their consumption profile and demand different products and services.