Fortnightly Magazine - January 2007

Utility Profits Soar

The recovering merchant sector leads earnings improvements in the third quarter.

Although total revenues were up by almost 5 percent for the third quarter of 2006 over Q3 2005, operating income and net income were up by 22.82 percent and 80 percent, respectively.

Future Imperfect: Managing Strategic Risk In an Age of Uncertainty

Part 1 of a 2-part article explores new technologies most likely to influence competitive success.

When fighter pilots list the advantages of one combat aircraft over another, they do not speak primarily of speed. Rather, they refer to the ability of one aircraft to “turn inside” another, to negate other aspects of performance with a superior turning radius. For the utility industry, fundamental changes in technology, markets, or regulatory requirements can “turn inside” the ability of companies to respond, as long-lived investments and choice of fuels lock them into their strategic choices for decades. This article proposes ways for utility leaders to understand strategic risk better and manage it more effectively.

States of Denial

Three challenges to federal authority from those unhappy with the status quo.

A look at how regulators, grid operators, and consumer advocates in Arkansas, California and Connecticut have posed challenges to established law and policy at FERC.

V