Cost

In a hydrogen-electric economy, power companies could see very large market opportunities—and play a major role in enabling and accelerating implementation.

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.

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.

Energy producers already have begun to prepare for coming CO₂ regulations. As a first step, many companies are implementing internal trading schemes. In this article, we have focused on AEP and Southern Co. as case studies of how companies are preparing for a carbon-constrained world, because they are in the top 5 companies in the United States with the highest proportion of coal-fired generation in their fleets.

Jay Kumar, President, Economic & Technical Consultants Inc.: Could Hind Farag and Gary L. Hunt point out any winner whose power costs have decreased after the implementation of LMP? I can bet they won’t find even one single (real) entity. ... I am glad that MISO is sticking to the original basis of a supposedly competitive market.

Diane Moody, Director, Statistical Analysis, American Public Power Association: “The Fallacy of High Prices” purports to show that restructuring of wholesale power markets has resulted in significant benefits. However, the analysis it offers in support of this proposition is not credible.

Utilities need to begin planning for U.S.-wide emissions restrictions that will be more effective than state efforts. Such restrictions are no longer a matter of “if,” but “when.”

To turn efficiency investments into a growing revenue source, strong programs, in conjunction with effective monitoring and verification, are the keys to success.

The most important action regulators can take to minimize consumer electricity costs is, and will continue to be, ensuring competitive wholesale markets, while demanding a rich mixture of products from the suppliers in these markets.

If the underlying wholesale electricity markets from which supplies are procured are competitive, then the remaining concerns regarding price levels and volatility can be addressed through regulatory policies.

While oil and gas prices now are falling after the latest experience with fuel-price volatility, the Global Energy Decision fuels team is focused on modeling an integrated world-wide system of fuel relationships encompassing crude oil, natural gas, coal, and increasingly, synfuels to help our clients assess the implications of fuel-price swings on their businesses. Let’s look at the potential impacts and implications of this growing reliance on liquefied natural gas for North America’s power-generation demand.