New federal policies portend a wave of demand-response programs, and perhaps a new era in resource planning.
When President Bush signed the energy bill on August 8, he set in motion a chain of events that might lead to major changes in the way utilities price and meter retail electric services—and ultimately in the way they value and use non-traditional energy resources.
What can be done to improve weather prediction and load forecasts?
Improving the day-ahead weather and load forecast by just 1 degree Fahrenheit would have huge financial benefits for the industry.
Analyzing the conservation effects of demand response programs.
Does demand response increase or decrease overall electricity usage?
Ratemaking Special Report
Regulatory Uncertainty:
In a joint survey conducted by Navigant Consulting and , utility executives identify the biggest challenge to their business.
No matter what position you subscribe to when characterizing the degree of competition in today's energy industry, it is clear that regulation continues to serve as a major influence on the business strategies and operations of the gas and electric distribution utilities in North America.
A new approach to rate design.
As energy markets have evolved in the late 1990s away from cost-based transactions to competitive market-based transactions, the exposure to market risks for the variable cost of supply has substantially increased.1 Reflected in these market risks are the diminishing reserves for North American gas supply, which has created conditions of extreme volatility in gas supply. The added market risk is compounded by the sensitivity of some retail load customers to weather conditions.
Technology Corridor
Utilities are finding strategic benefits in demand-based metering technologies.
It's been years since utilities regarded customers as mere check-writing extensions of their meters. In fact, utilities' information technology focus during the past decade has centered on gaining greater control over customer information. The objective: Focus on-and fill-customer needs. The results are everywhere:
Utilities that are short on capacity and operate in a stable regulatory environment may be able to extract value from interruptible rates.
The industry continues to debate the costs and technology of automated meter reading, even as some regulators insist on immediate implementation.
The pros and cons of dividend pay-out reductions and stock repurchase programs in uncertain economic times.
The Dow Jones Utility Average currently stands at its lowest level in five years. Electric and gas utilities, along with U.S. companies generally, have been consistently lowering their payout ratios over the past several years, and that downward trend is projected to continue. What do these facts portend for utility investors in the near future?