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Taking Utilities Private: Return of the Barbarians

Experts debate whether KKR's leveraged buyout of UniSource Energy is right for the industry.

“From a public policy standpoint, should a utility that provides a vital public good be owned by a private group that gains ownership by taking on a high degree of debt (risk)?” Mark T. Williams, executive-in-residence at the Finance & Economics Department at Boston University, identifies the quintessential issue that will no doubt be heatedly debated in boardrooms and commissions as more utility CEOs are tempted to become private utilities through a leveraged buyout transaction. And tempted they will be.
Byline: 

Richard Stavros

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Rethinking Restructuring

Two Cato analysts suggest a return to the past-vertical integration, but now with no state regulators.

The defeat of the energy bill in the Senate last year has thrown electricity restructuring back on its heels. There clearly is no consensus among politicians or academics regarding how this industry ought to be organized or how it might best be regulated. Finding our way out of this morass requires a reconsideration of how we got to this dismal point in our regulatory journey. Doing so suggests a surprising series of conclusions about what has gone wrong and where to go from here.
Byline: 

Peter Van Doren and Jerry Taylor

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The Utility Sector: A Wall Street Takeover?

Financial players bring credit depth to energy markets, but will they play by the rules?

The center of gravity for energy marketing and trading is moving from Houston to Wall Street. Who’s in, who’s out, and who’s testing the waters?
Byline: 

Michael T. Burr

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Generation Roundtable: Power Flux

Generators struggle to plan for the future as they cope with an unstable present.

Generators struggle to plan for the future as they cope with an unstable present.

When the acting administrator at the Environmental Protection Agency (EPA), Marianne Horinko, signed the EPA's "routine replacement" rule on Aug. 27, 2003, she proclaimed that the new approach to Clean Air Act regulation would "provide … power plants with the regulatory certainty they need."

Byline: 
Michael T. Burr
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Return on Equity: A Survey of recent PUC Rulings

A Survey of Recent PUC Rulings

Our annual overview of PUC rulings shows how rate orders handed down during the past 12 months have focused both on declining interest rates and increased financial risks—and how they should affect investor expectations.
Byline: 

Phillip S. Cross

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What Do You Mean by Green?

Seemingly eco-friendly definitions can prevent adoption of renewable portfolio standards.

Seemingly eco-friendly definitions can prevent adoption of renewable portfolio standards.

Byline: 

Michael Strong

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Off Peak

Surfside reading for the energy workaholic.

Surfside reading for the energy workaholic.

The Last Energy War: The Battle Over Utility Deregulation

Utility deregulation is the biggest consumer rip-off since the S&L debacle, activist Harvey Wasserman argues. He says electric competition has wider and more deadly implications: costs running to trillions of dollars, environmental threats, and the further delay of renewables like wind and solar energy.

Reinventing Electric Utilities: Competition, Citizen Action, and Clean Power

Byline: 
Source: Amazon.com
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Off Peak

Surfside reading for the energy workaholic.

Surfside reading for the energy workaholic.

The Last Energy War: The Battle Over Utility Deregulation

Utility deregulation is the biggest consumer rip-off since the S&L debacle, activist Harvey Wasserman argues. He says electric competition has wider and more deadly implications: costs running to trillions of dollars, environmental threats, and the further delay of renewables like wind and solar energy.

Reinventing Electric Utilities: Competition, Citizen Action, and Clean Power

Byline: 
Source: Amazon.com
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Size Matters: Consider teh Alternatives

For small to midsize utilities, the costs and burdens of being a stand-alone investor-owned utility merit considering the alternatives.


For small to midsize utilities, the costs and burdens of being a stand-alone investor-owned utility merit considering the alternatives.

A pressing question for many utilities-particularly small to midsize utilities-is whether to remain a standalone publicly owned company at their current form and size. Do the benefits outweigh the costs?

Byline: 
Lyle D. Miller
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