A rash of rate hikes around the country could have utilities facing a public-relations disaster.
Constellation Energy CEO Mayo Shattuck has complained that he and the utility have unfairly been demonized in the public and in the press. In one interview with a Maryland paper, Shattuck showed distress over the verbal abuse his executives had received from angry ratepayers. And who can blame him?
More consolidation could trim costs, but some CEOs fear a backlash from regulators.
With the possible exception of keeping the lights on, the merger game dwarfs just about every other question facing today’s electric utilities. The last big wave of consolidation hit in the late 1990s. Now the forecast calls for a repeat performance, but don’t bet the farm. There’s a hitch, you see. It’s today’s high commodity costs.
Ratemaking Special Report: Survey respondents weigh in with needed actions.
The utility regulatory process is prone to controversy, given the inherently adversarial roles and varied viewpoints among the utilities, regulators, and other stakeholders. Oft-heard pleas of "why can't you just see this issue my way" or "can't we all just get along" underscore the deep-seated frustrations of utility leaders and regulators in trying to find a common ground for addressing crucial issues surrounding the formulation of business strategies, establishment of responsible financial goals, and setting of operational performance standards for the regulated gas and electric distribution utility segments of the energy industry.
Recent attrition raises the question: Consolidation or death spiral?
New ideas that may transform the utilities industry.
Business & Money
Sticking to the Knitting:
A review of three years of post-Enron stock performance by electric utilities.
Immediately following the Enron collapse, investors dumped the stock of any electric power company that appeared to be pursuing non-traditional growth strategies. Any company that emphasized unregulated businesses-investments in overseas assets, merchant power plant development, and energy marketing and trading-was suspect.
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.
People
New Positions:
Rep. Joe Barton, R-Texas, stepped into the role of chairman of the House Energy and Commerce Committee, succeeding Rep. Billy Tauzin, R-La., who is leaving Congress.
Duke Energy named David Hauser as its permanent CFO. He had been acting CFO since November. He succeeds Robert Brace, who resigned.