EPC

Unconventional gas and LNG are changing the outlook for future gas prices.

Originally developed to compensate U.S. electric utilities for regulatory assets rendered uneconomic by deregulation, so-called “stranded-cost” securitization techniques are finding new applications. To date, utilities have issued approximately $40 billion of stranded-cost securitizations. That number could increase dramatically if the industry applies well-tested securitization techniques to the extraordinary costs it faces in the future.

(August 2008) Luminant (the former TXU power generation unit) announced that Texas Secretary of State Phil Wilson joined the company as senior vice president of public affairs. NiSource named Stephen P. Smith CFO. AEP named Richard E. Munczinski senior vice president, shared services. And more...

Sponsors of new nuclear power projects face a gauntlet of development challenges, from fickle regulatory policies to supply chain uncertainties. By preemptively addressing risks and taking a systematic, hands-on approach to development, companies can improve chances for a nuclear renaissance in America.

Structural and regulatory factors have allowed utilities in some countries to leapfrog America’s utility industry in terms of technology leadership. But U.S. utilities are learning valuable lessons from international advancements.

A huge backlog exists for utility infrastructure projects. Major players in the construction industry—ABB, Black & Veatch, Siemens, The Shaw Group and WorleyParsons—discuss the trends, both good and bad, and how they are getting the job done on badly needed projects.

The evidence is overwhelming: After a decade of relatively stable, or even declining, construction costs, the industry is now facing a prolonged period of elevated construction price tags. What are the causes behind this trend, and how might the cost increases translate into higher rates?

The heavy investment required for new generation technologies clearly is a global phenomenon, but global-resource competition to build power plants is making power-plant development more expensive—and may even limit the number that any one utility in any one country can develop.

When summer heat waves cause electric demand to peak, they also often cause wholesale electricity prices to rise substantially above their average levels. However, since most electricity customers face retail rates that do not reflect this movement in wholesale market prices, they do not modify their consumption patterns, causing a significant drop in economic efficiency. The Energy Policy Act of 2005 calls upon states and utilities to evaluate and implement DR programs to mitigate this problem.

(November 2006) Our annual return on equity (ROE) survey broadly shows a continuing decline in the level of debate over issues specific to restructuring of the electric market. It also reveals a subtle shift back to investor requirements and overall business risks faced by regulated companies.