Dominion

Retirement is Coming

Preparing for New England’s capacity transition.

A wave of coal-fired plant retirements presages a possible crisis in the New England market. As load-serving utilities in ISO New England become increasingly dependent on natural gas-fired capacity and large-scale renewable generators, the region might be forced to rely on expensive cost-of-service reliability contracts to keep the lights on. Stakeholders are considering alternative approaches to encouraging power plant development, including special rate incentives previously reserved for transmission projects. Paul J. Hibbard, former Massachusetts DPU chairman and now vice president with the Analysis Group, analyzes how resource constraints are blurring the lines between competitive markets and integrated resource planning in New England.

Transactions (May 2011)

Capital Power acquires Bridgeport Energy plant; ReEnergy Holdings acquires cogeneration facilities; Dominion Resources raises capital through bond issue; Edison Mission Energy refinances debt and others.

Seismic Omen

Fukushima shockwaves hit America’s nuclear renaissance.

In the aftermath of the March 11 earthquake and tsunami, questions are arising about the safety and survivability of reactors located in geologically active areas. Major changes might be required, and as a result the U.S. nuclear industry might face an existential challenge on the order of the Three Mile Island accident.

Treading Water

With no guidance yet from FERC, Atlantic Wind is forced to wait.

Touted as the nation’s first-ever “offshore transmission highway,” the proposed Atlantic Wind Connection (AWC) high-voltage power line in theory could foster dozens of wind farms in shallow offshore costal waters up and down the mid-Atlantic seaboard — but only if federal regulators can get buy-in for new transmission planning rules that give precedence to large, macro projects aimed at boosting renewable energy. Otherwise, the grid project might never pass muster with the engineers charged with OK’ing new power lines, since the AWC is probably not needed to maintain reliability, and likely would not make electricity rates any cheaper for East Coast ratepayers. Should wind energy developers start with massive grid projects to attract clusters of wind turbines, or should the wind farms come first?

Green Power Supercharge

Over the past decade, utility green power programs (also known as green pricing programs) have helped utilities across the nation meet growing customer demand for electricity generated using renewable resources, as well as support both large- and small-scale local renewable energy projects. Additionally they’ve helped utilities improve relations with utility commissions, local environmental groups, and other key stakeholders.

People (March 2011)

First Energy subsidiaries get new executives; Constellation names new treasurer, finance v.p., and CIO; Puget Energy gets new general counsel; plus senior staff changes at Dominion, Georgia Power, Parsons, California Energy Commission, Washington Utilities and Transportation Commission, and others.

People (February 2011)

American Electric Power names new president; Edison International promotes two to e.v.p.; DPL elevates Craig Jackson to vice president and treasurer; INGAA names new director of communications; plus personnel changes at Constellation, Consumers Energy, Southwest Power Pool, and other organizations.

Capacity Contest

Raising the stakes in RTO markets.

Generators and demand-response providers are reaping rewards in forward capacity auctions, causing suppliers to go shopping for the most lucrative markets. Now the Midwest ISO is trying to catch up, by proposing its own auction for years-ahead resource bids. But does RTO shopping serve the interests of customers, who are legally entitled to rates that are just and reasonable? Why are some state policy makers advocating a return to old-school RFPs for long-term contracts?

People (January 2011)

NARUC elects new Executive Committee, Arizona State University chooses former ACC Commissioner Mayes as head of new program at Sandra Day O’Connor College of Law, executive announcements at Southern Company, Calpine, Dominion and more.

Transactions (October 2010)

Blackstone and NRG acquire Dynegy assets; Constellation grabs Boston Generating; Exelon gets Deere Renewables; plus details on nearly $7 billion in bond offerings during the month of August, including: a two-tranche, $2 billion issue by Chesapeake; NRG’s $1.1 billion flotation; and major issues from Sempra, Edison International, FPL, Detroit Edison, Dominion and others.