Fortnightly Magazine - April 2004

Commission Watch

Solving the dilemma.

Commission Watch

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

Byline: 
John Seelke
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Business & Money

Some independent power producers failed to contain capital and O&M costs, adding to financial pressures.

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.

Byline: 
Holt Bradshaw
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Technology Corridor

Smaller systems aren't cost-effective.

Technology Corridor

Smaller systems aren't cost-effective.

It's time for a reality check on the commercial viability of wind farms. Are large wind systems more economical than small wind systems?

Byline: 
Gary C. Young, Ph.D., P.E.
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