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Financing

The New Money Pipelines

Business & Money: Merchant plants now draw investors from three different worlds — each with its own agenda.

It's tempting to chalk up the recent bubble in merchant generation to just another industry cycle, but there's more to consider. Investors have not made a wholesale exit from power finance. It is true that many have taken significant losses. It is also true that some remain wary. Despite all this, investors continue to enter the market and address the needs of the industry today.
Byline: 

Ren Plastina

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Long-Term Power Contracts: The Art Of The Deal

Long-Term Cooperative Supplier Relationships

The authors examine a “laddered” approach to pricing, whereby a wholesale supplier, instead of locking in to a long-term contract for 100 percent of current load, would be more secure financially with only one or a few staggered, partial commitments over time.
Byline: 

Amy Roschelle, William Steinhurst, Paul Peterson, and Bruce Biewald

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The Road Not Taken

Revisiting performance-based rates with endogenous market designs.

Have regulators selected the wrong market design in their restructurings during the past two decades?
Byline: 

Francis J. Cronin and Stephen A. Motluk

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Perspective

It is hard tyo foresee abandoning the discounted cash flow method relied upon so heavily for the past couple of decades.


It is hard tyo foresee abandoning the discounted cash flow method relied upon so heavily for the past couple of decades.

In the Feb. 15, 2003, edition of , Jonathan Lesser says that regulators need to rethink the traditional discounted cash flow (DCF) method for finding the cost of capital, or "at the very least, regulators should no longer rely solely on the DCF to set allowed returns."

Byline: 
Jeff D. Makholm
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Commission Watch

PUC could oust PG&E from the project, finding no need for an upgrade.


PUC could oust PG&E from the project, finding no need for an upgrade.

Nearly a year after the Federal Energy Regulatory Commission (FERC) gave its blessing for upgrading California's notorious "Path 15" transmission bottleneck, an administrative law judge (ALJ) at the California Public Utilities Commission (PUC) has thrown a monkeywrench into the plan.

Byline: 
Lori A. Burkhart
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Investment in Russia: Super Power Opportunities

The Russian power sector is priming itself for outside financial and infrastructure investment. By Branko Terzic and James Balaschak

The Russian power sector is priming itself for outside financial and infrastructure investment. By Branko Terzic and James Balaschak

Prospects for the successful development of the Russian power sector in the next 20 years will depend on the inflow of private investment into the industry. The crucial task, as clearly understood by both the Russian government and the management of the major power companies, is how to significantly raise the attractiveness of the industry to private investors.

Byline: 
Branko Terzic and James Balaschak
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Gas Turbinemania: The Merchant Power Plant Shake Out

Why it happened? Who lost in the bust? Who will survive to build another turbine?

Some merchant generation developers never saw the generation glut coming. Presenting the winners and losers of the latest cycle of boom, bubble, and collapse in the merchant generation industry.
Byline: 

Robert L. Sansom and A. Michael Schaal

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