Letters To The Editor
Letters to the Editor
To the Editor:
Fortnightly Magazine - July 2004
Power Measurements
IOUs take action, but other overriding forces will affect prices in the near term.
Power Measurement
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.
Byline:
Gary L. Hunt and Jon Ecker
Perspective
Commission policies need to recognize customer obligations and state commission decisions.
Perspective
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.
Byline:
Michael McGrath
Commission Watch
Incentive regulation is not a cure-all for the continuing controversy over return on equity.
Commission Watch
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.
Byline:
Jonathan A. Lesser
Business & Money
An analysis of the strategic implications of the re-basing of power and utility industry valuations.
Business & Money
An analysis of the strategic implications of the re-basing of power and utility industry valuations.
Over the past several months, traditional valuation levels have re-emerged in the power and utility industry, with recent premium valuation metrics compressing significantly.
Byline:
Ian Connor
Technology Corridor
Fundamentals in the energy markets are converging to increase the need for incremental gas storage.
Technology Corridor
Fundamentals in the energy markets are converging to increase the need for incremental gas storage.
The natural gas market is approaching a dramatic turning point. The fundamentals in the energy markets are converging to increase the need for incremental gas storage and the way that storage is used and valued by the customer community. Why is new storage needed? What will it take for new storage to be developed? What do customers need to commit to new storage projects?
Byline:
Jamie Craddock and Bill Hogue
Northwest Passage: BPA's Changing Role
The treacherous journey toward a more efficient and transparent Northwest power market may be nearing its conclusion.
The treacherous journey toward a more efficient and transparent Northwest power market may be nearing its conclusion.
Steve Wright stands at the helm of an agency with a seemingly impossible task. As CEO and administrator of the Bonneville Power Administration (BPA), Wright must serve a broad spectrum of interests, from aluminum smelters to sockeye salmon. And no matter what he or anyone does, it's impossible to make them all happy at the same time.
Byline:
Michael T. Burr
Of Blackouts and Lawsuits
Class-action claims for widespread utility service interruptions are a growing trend.
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.
Byline:
Gavin J. Rooney and Nicole Bearce Albano
Acceding to Succeed
How joining the EU may transform the Central and Eastern European electricity sectors
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.
Byline:
Bridgett Neely and A.J. Goulding
Transmission Investment: All Talk and Little Action
Except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward.
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
Byline:
Eric Hirst