risk

How to Build a Fence (and When)

A formal methodology for developing ring-fencing arrangements and setting conditions.

How can decision makers determine the appropriate degree of ring-fencing for a utility holding company? The authors propose a systematic and objective method – recognizing business and financial risks specific to the regulated utility and its affiliates.

Byline: 

Howard Lubow, Ryan Pfaff, Robert Malko, and Leslie Moore Romine

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Disruption on Wall Street

Financial executives contemplate the rise of distributed resources.

In a January 2013 report, EEI said fast-growing distributed energy could undermine the utility business model. Wall Street is paying attention.
Byline: 

By Michael T. Burr, Editor-in-Chief

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Bargain or Bonanza

Is discounted cash flow (DCF) still a reliable tool for determining equity cost?

The time-honored discounted cash flow method for determining appropriate utility returns falls short when interest rates are low. Inadequate ROEs ultimately increase cost of capital and wipe away any temporary savings.
Byline: 

Carmen L. Gentile and Monica M. Berry

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PPAs for DG

What every real property owner should know.

Financing has been scarce for distributed generation. But as opportunities expand, commercial frameworks are solidifying. Power purchase agreements are paving the way to a bright future for DG.

Byline: 

Nicholas A. Giannasca

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