Business & Money

Nuclear Life Extension

Deciding whether to go forward with a second license renewal.

A majority of nuclear power plant operators already have received operating license renewals – to operate their plants for 20 years beyond the 40 years outlined in their initial operating licenses. As utilities decide whether or not to invest in license renewal, they must consider three key questions.

Business Model Mashup

Three ‘power plays’ for utilities seeking growth.

Threats to the utility business model mean that it’s time to make choices about future growth to protect cash flows while investing in new ventures.

Utility Business Risk: A Reference

Business Versus Financial Risk: Debt is thought to be less risky than equity because debt holders have priority over equity holders as to: (1) distribution of assets in the case of dissolution of the company; and (2) distribution of earnings in the case of everyday operations.

Life in the Transco Age

The competitive transmission genie is out of the bottle.

FERC Orders 890 and 1000 have opened the doors to independent transcos, heralding an era of innovation to solve reliability and capacity problems.

Modernizing with Trackers

Time-tested cost recovery mechanisms provide stable funding for infrastructure replacement.

Automatic tracker surcharges provide timely cost recovery for multi-year utility system improvement programs.

Smart Transition

Embracing a competitive and digital future for utilities.

A recent Accenture survey shows utility executives believe smart grid capabilities will transform the industry and bring competitive opportunities.

All You Need to Know

Picturing utilities in a series of sobering snapshots.

Utilities are growing rate base despite static or declining demand: making customers pay more for a product they want less of.

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.

Making Friends with Solar DG

Better to compete from within than fight from afar.

Utilities should embrace distributed solar generation, offering O&M, aggregation, or marketing services, rather than lament a lost business model.

Pricing Social Benefits

Calculating and allocating costs for non-traditional utility services.

Alternative ways to calculate utilities’ costs of service allow policy makers to achieve social goals in a way that’s fair and economically efficient.