IT

The Future of Electric Competition: Concentrated Power

An analysis of competitive power markets finds that oligopolies are the end game for liberalized power markets.

The British wholesale power market is about to enter a new phase. Having enjoyed a long period of surplus capacity, the combination of the forced retirement of some nuclear plant and continued demand growth is likely to lead to a capacity shortage within the next three to four years, and it is by no means clear whether the market, as it currently operates, will be able to maintain secure supplies.
Byline: 

Dr. Anthony White, MBE

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Corporate Risk: What Does Management Really Know?

A short list of questions that every board member and senior manager should be able to answer.

“We pursue a disciplined approach to risk management" says the CEO of a major utility during the company's earnings call with analysts and investors. In this era of increased scrutiny over corporate governance, how can senior management and the board be certain that this statement is accurate, and where does the discipline begin?
Byline: 

Brett Friedman and Tim Essaye

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Reversing the Gas Crisis: The Methane Hydrate Solution

Commercialization of methane recovery from coastal deposits of methane hydrates could head off an impending gas shortage.

More than half of the Earth’s organic carbon is in the form of methane hydrates—also known as the ice that burns. U.S. potential is at least 100,000 Tcf., but commercial production has not been achieved.
Byline: 

Henry R. Linden

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IT Roundtable: The Digitized Grid

Data gathering and controllability offer the quickest path to reliability.

Technology leaders at Pacific Northwest National Laboratory, the Electric Power Research Institute, and the National Rural Telecommunications Cooperative present their visions of energy IT in the 21st century.
Byline: 

Michael T. Burr

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Merchant Power: Ratepayers Back At Risk

A review of power plant deals in 2004 shows that utilities are buying.

Whether evolution or devolution, the merchant deals done to date show movement to a familiar structure; ratepayers are back at risk. While ratepayers have benefitted from merchant plants, they also paid since competition began with PURPA in 1978, and many of the acquisitions put them at risk for future changes in power values and fuel costs.
Byline: 

Jeff Bodington

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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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Comments on 'Solving the Crisis in Unscheduled Power'

Letters to the Editor

Robert Blohm's article, "Solving the Crisis in Unscheduled Power," ignores a significant part of the power-scheduling paradigm — that is, it ignores transmission. Every power schedule not only includes load and generation but also a path to move the electricity between those points.
Byline: 

Mark B. Lively

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Technology Corridor

Cyber and Physical Security:

Technology Corridor

Cyber and Physical Security:

Although NERC and other agencies are helping out, utilities still face internal obstacles.

Byline: 
Christian Hamaker
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Utility M&A: Buying Time

Buying Time

Buying Time

Slowly and cautiously, utilities are moving back into growth mode.

The air is buzzing with talk of mergers and acquisitions (M&A). It can be heard in the boardroom and on the trading floor. Bankers hear it, and they see their deal backlog beginning to grow. Fund managers hear it, as they hunt for the best buys in the market before strategic investors snatch them up. Financial advisers and lawyers hear it, too; their phones are ringing more than they have in years.

Byline: 
Michael T. Burr
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