Law & Lawyers

Power Measurements

What did LMPs tell us this summer in PJM's new neighborhood?

Power Measurement

What did LMPs tell us this summer in PJM's new neighborhood?

With one summer under its belt as a member of PJM, ComEd has been called a complete success by some, boring by others. On the whole, prices in the region were quite flat, and spreads between the 1,281 price nodes in the region were small to non-existent. In fact, the best opportunity for a generator to make money in this market was to export power to a neighboring market.

Perspective

How the filed-rate policy wreaks havoc- and what courts can do about it.

Perspective

How the filed-rate policy wreaks havoc- and what courts can do about it.

Like many venerable legal rules, the filed-rate doctrine is rarely questioned. Over the last century, it has served many important purposes. However, with deregulated wholesale electric power markets at the federal level and various degrees of deregulation across the states, both the doctrine's continued applicability and usefulness are suspect.

Commission Watch

FERC Versus Bankruptcy Jurisdiction:

Commission Watch

FERC Versus Bankruptcy Jurisdiction:

Two recent articles in the 1 discussed conflicts that have emerged in the last 18 months over the respective jurisdictions of bankruptcy courts under the Bankruptcy Code2 and the Federal Energy Regulatory Commission (FERC) under the Federal Power Act.3 This occurs when a debtor seeks the bankruptcy court's approval under Section 365(a) of the code4 to reject a wholesale electricity sales contract that is a FERC-jurisdictional rate.

Business & Money

Merchant plants now draw investors from three different worlds-each with its own agenda.

Business & Money

Merchant plants now draw investors from three different worlds-each with its own agenda.

It's tempting to chalk up the recent bubble in merchant generation to just another industry cycle, but there's more to consider. Investment in the industry was far from even, leaving some regions teeming with unused peaking plants while other regions continue to struggle with a need for capital investment.

Renewable Energy

Mandatory portfolio standards have different implications for different technologies.

Technology Corridor

Renewable Energy:

Mandatory portfolio standards have different implications for different technologies.

The federal government and several state governments are considering programs to increase the share of electricity produced by renewable generation resources to 20 percent or more. If these programs are implemented and pursued successfully, they will trigger a dramatic change in the role of renewable generation and the requirements placed upon it by the market.

An Expensive Experiment? RTO Dollars and Sense

Financial data raises doubts about whether deregulation benefits outweigh costs.

This year, U.S. electricity consumers will spend more than $1 billion financing the operation of six RTOs. RTO costs have nearly doubled since 2001. Restructuring the energy industry was more costly and more risky than anticipated, and reasonable estimates of RTO costs outweigh nearly all of the benefits anticipated.

Cross-Subsidies: Getting the Signals Right

Should regulators care about the inefficiencies?

Utilities were founded to create cross-subsidies, but regulators need to address lingering uncertainties about such subsidies in a coherent, constructive way. The authors offer five recommendations.

Model Risk Management: How to Avoid an Earnings Surprise

The industry is going down the mark-to-market route, creating significant opportunities for earnings swings and distortions.

Domestic and international groups have pushed the industry toward mark-to-market accounting, creating significant opportunities for earnings swings and distortions and making good model risk management more essential now than ever before.

The New, New Thing?

At a posh dinner event and conference, industry experts speculate on the issues that could affect the industry in 2005.

It was the most exclusive, and one might say, one of the most extraordinary dinners. Never have I seen so many prominent CEOs, regulators, and financial gurus all in one room, discussing the future of the electric industry.

People (December 2004)

Lawrence E. De Simone joined Northeast Utilities as president of subsidiary Northeast Utilities Enterprises Inc. Kent McCargar, vice president and CFO at DTE Energy Services, was named president of the company. Gary Stephenson has joined DPL Inc. as vice president, commercial operations. And others...