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Business & Money

Solution in Search of a Problem

Byline: 

Thomas Feldman

Magazine Volume: 
Fortnightly Magazine - December 2012

Utilities seeking financing for environmental upgrades should look to the markets for debt and equity, rather than trying to securitize those costs.

Image: 
Figure 1 - Securitization by Purpose (% of Total)
Figure 2 - Risk Compression Caused By Securitization
Category: 
Transactions Business & Money
Author Bio: 

Thomas Feldman is a principal at Concentric Energy Advisors.

Category (Actual): 
Rate Cases
Environmental
Bonds / Debt Markets

Securitization fails the test for financing environmental capex.

What Price, GHGs?

Byline: 

Philip Q Hanser and Mariko Geronimo

Magazine Volume: 
Fortnightly Magazine - October 2012

Renewable portfolio standards and other green energy rules put a price on environmental benefits. Calculating this price can help clarify the social value of GHG reductions.

Image: 
Figure 1 - Implied CO2 Externality Values of Carbon Reduction Policies
Figure 2 - Ranges of Implied CO2 Externality Values
Category: 
Business & Money
Author Bio: 

Philip Q Hanser is a principal with The Brattle Group, and Mariko Geronimo is an associate with the firm. The views in this article are theirs and not those of The Brattle Group or its clients.

Category (Actual): 
Pricing
Environmental
Coal

Calculating the implied value of CO2 abatement in green energy policies.

Hedging or Betting?

Byline: 

By John A. Neri

Magazine Volume: 
Fortnightly Magazine - September 2012
Many utilities engage in hedging to protect customers from price spikes. But unless regulators are involved in crafting and monitoring these programs, they can turn into speculative ventures that put ratepayers at risk — for the benefit of shareholders.
Category: 
Business & Money
Author Bio: 

John A. Neri is a principal with energy consulting firm Benjamin Schlesinger and Associates, and is a lecturer in economics at the University of Maryland.

Category (Actual): 
Rate Cases
ETRM & Markets
Natural Gas

Lacking regulatory oversight, financial hedges turn into risky speculation.