A renewed capital investment structure is required for long-term investment in power infrastructure.
The bank markets and the long-term fixed income markets, or institutional investors, have long memories, and their pain is still fresh. Over the last few years, they have had to watch their investments in power infrastructure become distressed, bankrupted, or reorganized.
Fortnightly Magazine - April 2004
A coordinated approach helps control costs.
Historically, transmission and distribution assets have been quiet utility stepchildren- generally ignored by both regulators and senior utility management while, their generating asset relations remained in the limelight. But as restructuring of the electric industry evolved in the 1990s, a looming competitive environment created strong pressures within utilities to reduce spending.
Electricity rates may be heading skyward sooner than we think.
Are state regulators in danger of bringing about the thing they most fear-higher electricity rates? Critics charge that some regulators seem to be opening up the cookie jar, letting utilities have as they please with no supervision.
Rep. Joe Barton, R-Texas, stepped into the role of chairman of the House Energy and Commerce Committee, succeeding Rep. Billy Tauzin, R-La., who is leaving Congress.
Duke Energy named David Hauser as its permanent CFO. He had been acting CFO since November. He succeeds Robert Brace, who resigned.
Letter to the Editor
To the Editor:
Cato's Peter Van Doren and Jerry Taylor analyzed the electricity crisis in the February 2004 issue of the ("Rethinking Restructuring," p. 12) and concluded that the solution to a bad situation is vertical integration and mandatory real-time pricing. In my opinion they have got it half right.
New England's experience may redefine the term.
During the 1990s, capacity margins in the United States declined almost one third, falling from 21 percent in 1991 to less than 15 percent in 2001. In some regions, margins shrunk to less than 10 percent. Concerns grew over electricity reliability and possible upward pressures on electricity prices. However, as new gas-fired power plants began to come on line in the late 1990s, the developing electricity generation capacity surplus began to raise concerns.
A face-to-face interview with FERC Chairman Pat Wood III.
Bold. Fearless. Relentless. These are the words now being used by both critics and supporters to describe Federal Energy Regulatory Commission Chairman Pat Wood III.
FERC's recent policy initiatives and directives mark a strong shift from what was last year regarded as a more reluctant commission.
Solving the dilemma.
The rationale from the Federal Energy Regulatory Commission (FERC) for eliminating through-and-out (T&O) rates while simultaneously imposing a Seams Elimination Charge/Cost Adjustment/Assignment (SECA) is an acknowledgement that FERC is conflicted on a fundamental economic principle: regional transmission organization (RTO) loads use the transmission systems of exporting RTOs; therefore, it is correct for importing customers to compensate exporting RTOs for the use of their transmission syste
Business & Money
Some independent power producers failed to contain capital and O&M costs, adding to financial pressures.
Merchant generators can substantially increase cash flow by revamping their capital allocation processes. Based on several recent client engagements, a PA Consulting study found that merchant generators often follow a flawed allocation process that misappropriates cash toward wasteful maintenance and capital expenditures, resulting in reduced asset values and erosion of precious cash reserves.