Law & Lawyers

The Law of Unintended Consequences

The transition to distributed generation calls for a new regulatory model.

With the best of intentions, policymakers have encouraged the proliferation of distributed generation (DG) in various forms. Now, however, the trend toward DG is accelerating more rapidly than traditional utility ratemaking and business models are capable of managing. Failure to rationalize the regulatory framework will bring serious and costly disruption.

Digest

Duke installed a 36-MW energy storage facility at the Notrees wind farm; Ameren Illinois plans to deploy a Landis+Gyr mesh network; GE and Toshiba formed a strategic alliance to develop combined-cycle power projects; Alberta Newsprint contracted Caterpillar to supply gensets totaling 65 MW; Duke Energy plans to retire two coal-fired stations; EDF started operations at a 150-MW wind project; Sempra completed the first 150-MW phase of the Mesquite solar complex; Atlantic Wind selected Bechtel to build an offshore HVDC transmission line; Alstom Grid and Capgemini allied to offer smart grid solutions; plus contracts and announcements from Itron, Qualcomm, Echelon, Siemens, Portland General Electric, Pattern Energy, Juhl Energy, Honda, and others.

Elevated Risk

In an open letter to directors, IBM’s energy security lead recommends appointing a senior executive with authority to effect cultural change.

Achieving security requires a new office in the C-suite. An open letter to utility directors.

People (April 2013)

Southern Company makes changes in operations and power subsidiaries; Michael Chesser to leave KCPL board; Dynegy names new e.v.p.; Rolando Pablos resigns from Texas PUC; In Memoriam: Kris R. Nielsen.

Transactions (April 2013)

February was a quiet month for debt issues, with asset sales and equity issues dominating the market. Deals by NextEra, Sempra, SRP, Dominion, TransCanada, and others totaled at least $2.4 billion.

No Fuel, No Power

Lessons from New England on electric-gas market coordination.

Despite the hype about cheap gas, pipeline constraints are creating new risks. New England’s wholesale power prices ran three times as high this past February compared to the same month in 2012.

Build to Order

Engineers and constructors adapt to serve an industry in transition.

From gas pipelines to PV arrays, the nation’s contractors are seeing growth in utility infrastructure. Fortnightly talks with executives at engineering and construction firms to learn what kinds of projects are moving forward, where they’re located, and what lies over the horizon.

Looking Beyond Transmission

FERC Order 1000 and the case for alternative solutions.

How FERC Order 1000 gives short shrift to NTAs (non-transmission alternatives) in regional system planning—while consumers pay the price.

Bottling the Genie

Why deregulation is easy and reregulation is hard.

Even with convincing evidence that deregulation has failed to deliver promised benefits, efforts to restore public oversight face tough resistance. The reasons involve policy inertia—and blind faith in free markets.

Sandy and the Smart Grid

Disaster shows the need for grid modernization. Is technology up to the challenge?

With a road map for planning, utilities can realign organizations, integrate systems, and satisfy stakeholders. The destination: a more resilient grid