Lewis “Lew” Hay III intends to retire from NextEra Energy at the end of 2013 as part of a planned leadership succession process. Hay will serve as executive chairman from July 1, 2012, until his retirement, and James L. Robo, currently president and CEO of NextEra Energy, will succeed Hay as CEO, effective July 1.
(May 2012) Entergy Louisiana starts construction on gas-fired power project; Virginia Commonwealth University and Dominion partner on a test site for efficient energy technologies; Burlington Electric Department selects Siemens for meter data management platform; IKEA commissions four Blink electric vehicle charging stations; Edison Mission Energy, TIAA-CREF and Cook Inlet Region Inc. form partnership, and others.
Indian Point and the battle for the nation’s energy future.
State lawmakers are trying to block relicensing of the Indian Point nuclear power plant near New York City, but the owner hopes to keep the plant generating low-cost electricity. The battle over Indian Point raises new legal issues—and represents a microcosm of the struggle for America’s nuclear future.
Planning ahead in a low-cost gas market.
IIt’s ironic that in today’s market, as the cost of hedging against commodity price increases has declined, support for utility hedging programs has sunk to a historic low. The ideal time to hedge is when prices are low and markets are relatively calm, because that’s when hedging costs and risks are the lowest. Conversely, waiting until prices rise and markets become volatile will expose customers to higher costs. Convincing regulators to approve hedging programs now will require a collaborative approach to educating and enlisting support from stakeholders.
Riverstone/Carlyle acquire eight power plants; Entergy pays $346 million to NextEra for Rhode Island plant; plus asset sales by First Energy and Thermo Cogen, and debt issues by MarkWest, Atlantic Power, Mississippi Power, and SCE totaling $1.6 billion.
(December 2011) Responding to Contributing Editor John Bewick’s analysis of factors impeding the nuclear renaissance in the wake of the Fukushima disaster. Plus comments about construction work in progress provisions as a strategy for saving ratepayers' money.
(December 2011) Lafayette Utilities System selects Elster’s EnergyAxis as its AMI system; ABB wins contract from Hydro-Quebec; Sapphire Power Holdings acquires gas-fired power generation from Morris Energy Group; Consumers Energy awards contract to Babcock & Wilcox; plus announcements and contracts involving BP Wind Energy, Abengoa Solar, Samsung C&T and others.
The old rules don’t always fit with new commercial realities.
To encourage billions of dollars of investment into America’s transmission grid over the next several decades, the Federal Energy Regulatory Commission (FERC) is restructuring its regulatory policies to bring market-based solutions into the framework for planning, construction, and operation of new transmission lines. The recent Order 1000 is the most dramatic example of this effort. But as FERC has learned before, one set of rules doesn’t serve the financial and commercial needs of all market participants.
Are merchant power assets overpriced?
By some measures, merchant power assets look like a bargain, selling for well below their replacement cost. But whether low prices signal a buying opportunity or a value trap depends on the outlook for electricity demand growth—not just in the long term, but also in the fairly immediate future.