Fortnightly Magazine - September 2008

Buyer's Remorse

The PJM complaint and the rising cost of electric reliability.

Who says ratepayers must accept the traditional measure of electric reliability—a single one-hour outage every ten years? If shown the bill ahead of time, might they decide otherwise; that such luxury is no longer affordable? Consumers are making similar decisions about gasoline and mortgages. Why not electricity?

Portfolio Primer

How to maximize shareholder value across the enterprise.

How can utility companies ensure investment dollars are being allocated wisely? Asset portfolio management (APM) attempts to capture and analyze the relationships among the drivers of SHV at the portfolio level. It provides management with a well-informed, multi-dimensional picture to help make efficient asset investment decisions that optimize the total enterprise SHV.

The Fortnightly 40

(September 2008) Shareholder value remains strong as the Big Build begins. Our fourth annual ranking shows healthy growth in earnings and share prices. But as capital spending grows, dividends are shrinking and equity returns are weakening. Regulatory relationships will separate future winners from losers.

Standard-Offer Service: Beauty or Beast?

Is development of retail choice compatible with best-priced standard-offer service for smaller customers? Conflicting policy priorities threaten to distort Maryland’s retail energy markets.

AMI Standards: A Work in Progress

Vendors battle it out while utilities await common communications protocols.

Uncertainties about smart metering goals are hindering efforts to standardize communications protocols and feature sets. While vendors battle over standards, utilities and policy makers are moving forward anyway—despite the potential for setbacks.

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