The commission's power grab over bankruptcy courts condemns merchants to a corporate netherworld.
A spate of proposed U.S. tax rule changes soon may open a window of opportunity for certain utilities.
Two-part real-time pricing reflects the two-part pricing found in other business sectors.
Georgia Power Co., Duke Power Co., and their customers have reaped the benefits of two-part real-time pricing (RTP) for nearly 10 years. This structure has been a perfectly acceptable and efficient means to price electricity, but a second structure for pricing electricity can now be introduced. Either structure is sound and efficacious. Each methodology has its advantages, and utilities should consider which method best serves their needs.
Power Measurement
A look at issues that could keep energy executives up at night.
The most common strategic issue depriving utility executives of sleep is the looming clash of investor expectations for steady growth in earnings compared with what utilities can deliver given slow growth in customers and demand. While many dream of assured regulated rates of return, the reality for most utilities is that the 1.5 percent retail growth experienced between 2002 and 2003 will prove unsatisfactory for earnings.
Complex billing is one way to minimize the size and frequency of blackouts.
The search continues for the smoking gun responsible for the Northeast blackout last August. Absent a clearly defined single cause, analysts turn to the usual suspects: Is the grid large enough? Does it require additional investment? Given that the grid was never designed to handle a competitive industry, is it reasonable to require that it now do so?
Service-quality improvements need to be thought through in advance and managed.
Customer information systems (CIS) are almost never justified and implemented to realize dramatic gains in quality of service. Revenue improvements? Yes. Rates management flexibility? You bet. Delinquency and write-off improvements? Sure. Statutory pressure, including introduction of deregulation? Maybe not as often these days, but still true. Technology consistency, supportability, and application integration? Absolutely.
Frontlines
The U.S. faces a near doubling of population this century. Will there be enough power for the people?
On this the 75th anniversary of its publication, -a journal that has sought out the truth through its investigation and understanding, been a place for knowledge and scholarship, and been a medium for intellectual discourse within the energy industry-looks out to the future.
In 2004, the quintessential question remains what it was 75 years ago: How will the energy industry meet the demands of tomorrow?
People for June 2004.
Business & Money
Investors are asking utilities questions about environmental and social risks. Answers can be a challenge.
When the tech-stock bubble burst in 2001, investors were outraged to learn that many stock analysts were being paid to over-hype stocks. The following year, Enron's ugly public death revealed the presence of a virulent infection in governance of many large and respected companies.
Commission Watch
CPUC questioned historic oversight authority.
To guarantee the continued growth of liquefied natural gas (LNG) importation and use in the United States, the energy industry needs to pay close attention to govern the regulation, siting, and operation of LNG import terminals-issues traditionally overseen by the federal government.