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A Market-Access Plan for Vertically Integrated Utilities

Assimilating the best of the regulated-utility and merchant models.

We propose a market-access plan (MAP) that does not advocate sweeping changes. It instead builds on existing VIU frameworks with structural improvements that are technically feasible, cost-effective, and politically practicable. The result assimilates the best of the VIU and merchant models; benefits the industry investment climate; increases the level of low-cost, efficient, and environmentally friendly power supplies; and promises to save customers millions of dollars.
Byline: 

Larry Eisenstat, Pat Alexander, and Don Gelinas

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Perspective: Leave Green-Power Quotas to the States

Congress should not impose a federal renewable portfolio standard.

The adoption of an RPS by more than a dozen states has inspired and contributed to proposals for a federal green-power quota. Leave the green-power quotas to the states. PURPA should be amended to include an RPS among the retail policies that can be adopted or rejected by state public service commissions.
Byline: 

James W. Moeller

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People

People for August 2004.

Positions filled at FERC, Colorado PUC, CMS Energy, and others.
Byline: 

PUF

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Facing the Death Penalty

Did FERC's market power ruling go too far?

Market-based sales put at risk are the financial lifeblood of some utilities, especially those of the multi-billion-dollar, vertically integrated variety. Those that fail FERC's market-power test will be forced to sell their excess generation at cost-based rates — a "death penalty," according to some utility CEOs.
Byline: 

Richard Stavros

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Natural Gas Storage: Now More Than Ever

Fundamentals in the energy markets are converging to increase the need for incremental gas storage.

The natural gas market is approaching a dramatic turning point. The fundamentals in the energy markets are converging to increase the need for incremental gas storage and the way that storage is used and valued by the customer community.
Byline: 

Jamie Craddock and Bill Hogue

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Transmission Investment: All Talk and Little Action

Except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward.

Just how much money should be spent on transmission infrastructure in the coming years? The answer depends on which study you read, but despite discrepancies, several threads among the current studies can be ascertained.
Byline: 

Eric Hirst

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Northwest Passage: BPA's Changing Role

The treacherous journey toward a more efficient and transparent Northwest power market may be nearing its conclusion.

The treacherous journey toward a more efficient and transparent Northwest power market may be nearing its conclusion, as increased funding, more generating capacity, and a burgeoning RTO paint a brighter picture for Bonneville Power Administration.
Byline: 

Michael T. Burr

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Business & Money: The Back-to-Basics Valuation Squeeze

An analysis of the strategic implications of the re-basing of power and utility industry valuations.

Many utilities are again focusing on perhaps the most viable, broad-based and credible growth strategy: mergers and acquisitions. Combined with supportive regulatory policies, the derived consolidation values of scale, cost-savings and synergies can be leveraged to benefit the public interest as well. Considerations of shareholder value and public policy require it.
Byline: 

Ian Connor

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ROE: The Gorilla Is Still at the Door

Incentive regulation is not a cure-all for the continuing controversy over return on equity.

Incentive regulation can provide benefits both to utility shareholders and customers by encouraging greater efficiency. But even if incentive regulation supplants traditional COS regulation, regulators and utilities still will need to confront the same basic ROE questions that have vexed both for many years. Because the base ROE under incentive regulation will be an integral part of the incentive structure itself, it ought not to be done as an afterthought. The approach described here is one way to address this important issue.
Byline: 

Jonathan A. Lesser

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