Fortnightly Magazine - October 2008

Fixing Depreciation Accounting

Accumulated provisions for depreciation belong on the right side of the balance sheet.

The time has come to revisit where the accumulated provision for depreciation belongs. Utilities objected—some 50 years ago—when it was moved from the right side of the balance sheet to the left side, with good reason. Consistency, comparability, reliability and relevance all demand an end to this strange accounting practice.

The Carbon-Smart Grid

Network intelligence yields green returns.

A more sophisticated delivery network can yield “carbon value” via zero or low-emission generation, T&D efficiencies and innovative market strategies.

Transmission is Bubbling

A billion-dollar ‘gold rush’ could send grid rates through the roof.

Money may be difficult to come by for Wall Street financiers in these dark days, but apparently not for electric transmission construction—at least so far. A rash of recent orders from FERC shows that generous financial incentives remain available to companies seeking to expand the nation’s grid capacity.

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