A study reveals how increasing the availability and flexibility of generation resources is cheaper than adding transmission.

A recent ruling puts the question squarely on the table: Can FERC overturn orders issued by the state public utility commissions that otherwise would stand in the way of its vision of regional transmission organizations with a standard market design?

On Oct. 22, FERC ruled that FERC-regulated entities must file their cash management agreements with the commission and notify the commission when their proprietary capital ratio drops below 30 percent, and when it subsequently returns to or exceeds 30 percent. FERC’s ruling comes in response to analysis that found “severe record keeping deficiencies” by some FERC-regulated entities. This problem has led credit rating agencies like Fitch Ratings to warn that consolidated cash management accounts and failure to document fund transfers among affiliated companies as intercompany loans could be factors contributing to a U.S. bankruptcy court’s decision to consolidate a solvent company in the bankruptcy proceeding of its affiliate.

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.

With a “return to basics” mantra now common in the industry, coupled with the recognition of under-investment and heightened reliability concerns, most companies are now facing significant capital expenditure programs. Many utilities are considering or have filed for rate relief.

How will technicians prevent another major blackout? Fortnightly weaves the opinions of industry insiders on the keys to electric reliability with a cautionary tale from Connecticut to present solutions for what’s ailing the grid.

By accommodating loads with limited storage and deploying resources in a more sophisticated manner, grid operators could expand the range of reliability resources. Consider the electric water heater.