Avoiding ‘earnings management’ requires transparency in reporting standards.
The SEC is taking steps toward substituting International Financial Reporting Standards for U.S. Generally Accepted Accounting Principles. Having certainty surrounding existing utility asset and depreciation accounting practices enhances the ability to use financial statements to accurately depict the results of operations and financial status of reporting entities.
Renewable mandates will shift power to FERC but pose problems for RTOs.
A recent survey conducted by the U.S Office of Personnel Management and reported by the Washington Post on March 13 ranked the Federal Energy Regulatory Commission as eighth best of some 37 federal agencies in terms “talent,” and third in “leadership and knowledge.”
Perception trumps reality at Florida ‘solar city.’
Once upon a time, a real estate developer dreamed of building a planned community. The developer, Syd Kitson, envisioned a “city of tomorrow™” in southwestern Florida, designed for efficiency, convenience and harmony with nature. Instead of driving cars everywhere, the 45,000 residents of Kitson’s Babcock Ranch would ride bikes to school, and walk to the cinema. They’d take a tram to visit friends in another hamlet, on the other side of a lush wildlife preserve.
Renewables attract utility investment dollars.
New federal policies have opened the gates to utility investments in renewable generating plants. Some states, however, still make it difficult for utilities to put such assets into the rate base. Executives at Duke, OG&E, PG&E and Xcel Energy discuss challenges and opportunities affecting their renewable investment strategies.
GHG reduction via residential electricity ratemaking.
Energy efficiency holds the key to meeting lofty greenhouse-gas (GHG) reduction goals. Rate design can help—specifically residential inclining block rates should be considered as part of the industry’s efforts to comply with forthcoming GHG targets.
Improving performance through graduated conditional ROE incentives.
Unlike the majority of performance-based regulation plans, alternative design paradigms require less data, by instead allowing firms to reveal performance potential. In an asymmetric environment, regulators don’t have needed information, but that can be overcome with better models and incentives.
A prerequisite for sustained nuclear renaissance.
The nuclear renaissance requires safety as its central focus. Industry vigilance at all levels is key to accident prevention, but only favorable public opinion will allow the industry to realize its enormous potential.
(May 2009)
Smart metering changes the back-office paradigm.
AMI’s data explosion will require back-office changes for CIS/billing.
The best example of combined dynamic rates and smart billing is found in Ontario, Canada. It uses central MDM to produce time-differentiated customer bills.