Fortnightly Magazine - January 2008

California: Mandating Demand Response

California’s load-management experience argues for formal DR standards

California hopes to reap $3 billion in benefits from demand response over the next 20 years. Maximizing the potential may require the California Energy Commission to exert its statutory authority. CEC’s chair co-authors.

Duke's Fifth Fuel

Conservation investments benefit participants and non-participants alike

For-profit energy efficiency programs are coming. Duke Energy proposes to align the interests of shareholders and retail customers within an expanded least-cost approach. Convincing regulators will require taking a holistic view of the costs and benefits.

What Price, Security?

Grid reliability depends on ‘reasonable business judgment’

The word “security” no longer means what it used to mean. Now, “security” means gates, guards and guns. It means protecting critical assets with a multi-layered cyber and physical perimeter. It means exercising vigilance and caution, and accepting inconvenience as a matter of routine.

Letters to the Editor

Before the hearings started, I felt the number of critical cyber assets for a medium size utility would be on the order of several thousand, not 20 as some major utilities are identifying under the CIP standards. This should be a red flag for the industry.

Texas Ring Fence

TXU’s buyout structure creates a potential model for utility M&A and refinancing deals

2007 was a big year for TXU Corp., as it went private in the largest leveraged buyout in history. To sweeten the deal for environmentalists and regulators, TXU made structural and financial concessions. Now TXU’s ring-fencing structure might become a template for future utility M&A and refinancing deals.

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