Investors are revolting against poor corporate governance, demanding tighter controls that will boost earnings and stock price.

A new wave of activism has risen in corporate America, driven by large institutional shareholders who claim companies have not gone far enough in their efforts to embrace good governance. These institutional shareholders maintain that good governance leads to superior financial performance and will not be satisfied unless the companies do more to implement good governance policy.

Perspective

Two Cato analysts suggest a return to the past-vertical integration, but now with no state regulators.

The defeat of the energy bill in the Senate last year has thrown electricity restructuring back on its heels. There clearly is no consensus among politicians or academics regarding how this industry ought to be organized or how it might best be regulated. Finding our way out of this morass requires a reconsideration of how we got to this dismal point in our regulatory journey.

EU nations are taking slow steps toward an integrated energy market, but they are many paces ahead of U.S. efforts.

Despite recent setbacks in establishing an acceptable balance of voting power among member nations, a new constitution for the European Union (EU) is expected to bring together dozens of separate nations into a single economic and political superpower and lead to an interconnected energy market throughout the European continent-one that will eventually stretch from Portugal to the Baltic Sea and from Ireland to Greece and perhaps beyond.

Technology Corridor

For most energy firms, the returns on investments in customer relationship management have been profoundly disappointing.

Back in the 1950s and 1960s, when big cars were all the rage, energy companies were developing the first systems designed to store and print customer billing data. These early version of the customer information system (CIS), written in FORTRAN and COBOL, ran on massive mainframes. The architectural model was simple.

How to benchmark return on equity (ROE) and depreciation expense in utility rate cases.

 

Perspective

Proper authority and market monitoring and mitigation could make the system work.

 

In the last few years we have watched appalled as the western U.S. electricity markets collapsed, taking with them the solvency and viability of several very large participants, including the California Power Exchange (PX).