Class-action claims for widespread utility service interruptions are a growing trend.
During the dog days of summer, a severe heat wave settles over the service territory of an electric utility. Electricity demand reaches an all-time peak as customers turn their air conditioners to the highest setting. Service interruptions occur throughout the utility's territory as high loads and low voltages cause breakers to trip, fuses to operate, transformers to overheat, and equipment to fail.
Fortnightly Magazine - July 2004
How joining the EU may transform the Central and Eastern European electricity sectors
It is not coincidental that energy assets are for sale across Central and Eastern Europe the same year that 10 new countries join the European Union (EU). New member states had to demonstrate significant sector reforms to qualify for EU membership. These sectors have historically had miserable economic results due to artificially maintained low prices, poor and often corrupt management, and significant political interference.
Except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward.
There's plenty of talk about transmission, says Theo Mullen. "But real action on transmission construction is scant," he adds. "Conferences and reports abound. Projects of all sizes are being proposed. But, except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward. The vast majority of larger projects are stalled for lack of financial commitment."1
Untapped T&D measurement data could make the difference on reliability.
Utility executives rely on sound decision making to determine how resources should be allocated, to ensure that systems operate with a maximum efficiency and reliability at the lowest cost. These executives walk the fine line of deciding where money should be spent to minimize the likelihood of an expensive catastrophe while also achieving a targeted level of reliability. These issues include:
Critics say FERC's filed rate doctrine is wrong for the times.
It's quite remarkable how the Federal Energy Regulatory Commission (FERC) has been able to pound a square peg into a round hole. With not much more than a wink and a smile, FERC has taken a depression-era law meant for monopolies-the Federal Power Act (FPA)-and has made it serve double duty as a foundation for competitive power markets.
Stephan T. Haynes, who has been American Electric Power's vice president of risk oversight since January 2002, was named vice president of corporate finance for the company.
Kay G. Priestly was named Entergy Corp.'s vice president of financial issues management. Priestly earlier was managing partner at Arthur Andersen.
IOUs take action, but other overriding forces will affect prices in the near term.
It's going to be a wild summer for the Western Electricity Coordinating Council (WECC), courtesy of higher than forecasted load growth, high gas prices, delays and cancellations of renewable resources, and lower than normal hydro generation.
Commission policies need to recognize customer obligations and state commission decisions.
Even the best of intentions can create unintended consequences. The Federal Energy Regulatory Commission (FERC) has acted aggressively and appropriately during the past few years to stimulate competitive wholesale electricity markets.
Incentive regulation is not a cure-all for the continuing controversy over return on equity.
Regulated utilities are all too familiar with the contentious disputes that surround how the allowed return on equity (ROE) is set in a traditional cost-of-service setting. These disputes, which are reappearing as numerous utility rate-stabilization plans signed as part of deregulation come to an end, are likely to hinge, as always, on the riskiness of utility operating environments.