Become a PUF Member Organization

Fortnightly Magazine - July 2004

Lost in Translation

Critics say FERC's filed rate doctrine is wrong for the times.

It’s quite remarkable how the Federal Energy Regulatory Commission (FERC) has been able to pound a square peg into a round hole. With not much more than a wink and a smile, FERC has taken a depression-era law meant for monopolies — the Federal Power Act — and has made it serve double duty as a foundation for competitive power markets. Yet FERC’s reinterpretation, for all its good intentions, may prove inadequate in the long run to define and support full-fledged energy markets.
Byline: 

Richard Stavros

Read Entire Article

People

People for July 2004.

Positions filled at American Electric Power, Schneider Electric, Foster Wheeler Energy Limited, and others.
Byline: 

PUF

Read Entire Article

Letters To The Editor

ISO/RTO

I believe the primary measure of successful “deregulation” is a minimization of the delivered cost of power to end users, at an acceptable level of reliability. To help achieve that, I suggest the following actions should be taken nationwide on a timely and consistent basis.
Byline: 

Richard P. Felak

Read Entire Article

Western Power Markets: Ready for A Wild Ride

IOUs take action, but other overriding forces will affect prices in the near term.

The new capacity brought on line in 2003 and 2004 likely will not drive down market prices but may well provide a measure of reliability to the market, possibly counteracting some of the usual price volatility seen in low hydro years. This is good news for the wholesale power business, and it signals that the industry is beginning to claw its way back from the near-death experience of the past few years.
Byline: 

Gary L. Hunt and Jon Ecker

Read Entire Article

ROE: The Gorilla Is Still at the Door

Incentive regulation is not a cure-all for the continuing controversy over return on equity.

Incentive regulation can provide benefits both to utility shareholders and customers by encouraging greater efficiency. But even if incentive regulation supplants traditional COS regulation, regulators and utilities still will need to confront the same basic ROE questions that have vexed both for many years. Because the base ROE under incentive regulation will be an integral part of the incentive structure itself, it ought not to be done as an afterthought. The approach described here is one way to address this important issue.
Byline: 

Jonathan A. Lesser

Read Entire Article

Business & Money: The Back-to-Basics Valuation Squeeze

An analysis of the strategic implications of the re-basing of power and utility industry valuations.

Many utilities are again focusing on perhaps the most viable, broad-based and credible growth strategy: mergers and acquisitions. Combined with supportive regulatory policies, the derived consolidation values of scale, cost-savings and synergies can be leveraged to benefit the public interest as well. Considerations of shareholder value and public policy require it.
Byline: 

Ian Connor

Read Entire Article

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, as increased funding, more generating capacity, and a burgeoning RTO paint a brighter picture for Bonneville Power Administration.
Byline: 

Michael T. Burr

Read Entire Article

Of Blackouts and Lawsuits

Class-action claims for widespread utility service interruptions are a growing trend.

What legal exposure does a utility face as a result of losses caused by a blackout? Is that exposure limited to individual claims by disgruntled customers, or can it be litigated as a class action?
Byline: 

Gavin J. Rooney and Nicole Bearce Albano

Read Entire Article

Acceding to Succeed

How joining the EU may transform the Central and Eastern European electricity sectors

An assessment of how EU accession countries are doing in meeting the union’s energy directives, liberalizing their markets, and overcoming obstacles for private investors.
Byline: 

Bridgett Neely and A.J. Goulding

Read Entire Article
V