Law & Lawyers

Greenhouse Gases: Reviewing the European Trade

Lessons from the EU Emissions Trading Scheme emerge after two years.

Despite assertions to the contrary, the European Union Emissions Trading Scheme is working. Industry has changed both short-term behavior and longer-term plans to reduce compliance costs—the driving down of greenhouse-gas emissions being the intended and achieved result. In this article, we review examples of the ETS affecting both planned and actual behavior. The other side of the coin is how regulatory and political uncertainty undermines this.

Future Imperfect II: Managing Strategic Risk In the Age of Uncertainty

Part two of our series shows how utility companies can manage, but never eliminate, strategic risk.

The consequences of a flawed strategic choice unfold slowly, but they carry great weight. Consider IBM, which in 1980 chose to outsource to Intel the 16-bit processor needed for its entry into the personal computer market. The Intel chip, however, could not use the operating system that IBM had designed for its older 8-bit processors. And so the company had to outsource the operating system as well as the chip—to a startup company called Microsoft.

The Rush to Reliability

FERC races to impose NERC’s new rules, raising howls of protest in the process.

After pleading with Congress for so many years, and then at last winning the requisite legislative authority to impose mandatory and enforceable standards for electric reliability, to replace its legacy system of voluntary compliance, NERC finds itself at a curious juncture. It wants to slow the transition.

Smart Grid, Smart Utility

The intelligent-grid vision is becoming clearer as utilities take incremental steps toward a brighter future.

Building the intelligent grid will require less technical innovation than it does strategic innovation—a characteristic not typically ascribed to U.S. regulated utilities. But the utility culture is changing—by necessity, if not by choice.

Assessing the Turmoil in New Zealand’s Electric Industry

 

BOOK REVIEW: Alternating Currents or Counter-Revolution: Contemporary Electricity Reform in New Zealand, by Lewis T. Evans and Richard B. Meade (Victoria University Press).

The news coming from across the Pacific Ocean over the past year seemed familiar, if at times puzzling. New Zealand’s energy minister, caught in a political faux-pas, hastily resigns—only to be reinstated a few weeks later. Concerns about inadequate power supplies and below-average hydroelectric storage are downplayed by government regulators. Then, a harsh winter wind storm triggers a transmission failure that blacks out the major city of Auckland. What to make of all this turmoil in New Zealand’s energy industry?

Letters to the Editor

John D. Chandley, Principal, LECG LLC: Bruce Radford’s “An Inconvenient Fact” provides a helpful critique of a fundamental element of open-access transmission reform, one of the most important rulemaking cases affecting electricity regulation at FERC.

Cynthia Bogorad, Spiegel & McDiarmid, Washington: From my perspective representing transmission-dependent utilities, I am very sympathetic to the underlying concerns that appear to be driving the TDAs’ proposal. However, the TDAs’ proposal is not the answer.

Garbage In, Power Out: How Trash Can Power Ethanol Plants

A win-win situation for the local government, utilities, and industry.

Ethanol plants either are operating, under construction, or planned for several areas in the Midwest. These same areas also have municipal solid waste (MSW) produced daily in an existing landfill. In addition, these areas have a need for establishing or extending a landfill.

As an alternative to the existing concept of a landfill, plasma-arc technology has been applied to the treatment of MSW. Known as plasma-arc gasification for the treatment of MSW, this recent development would eliminate or minimize the need for a landfill.

Watch the Cycle

Can the upward swing in global power infrastructure investment be sustained?

The current recovery in global power-sector investment is being driven not only by rising demand for power, but also by the huge levels of liquidity in global financial markets. How long will the current up-cycle last?