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CSAPR

Least-Risk Planning

Byline: 

Kenneth Colburn, et al.

Magazine Volume: 
Fortnightly Magazine - November 2012

The D.C. Circuit’s CSAPR ruling reinforces the benefits of planning ahead and keeping options open. A diverse portfolio strategy reduces risks and costs.

Author Bio: 

Ken Colburn (kcolburn@raponline.org) and David Farnsworth are senior associates at the Regulatory Assistance Project (RAP). John Shenot is an associate, Camille Kadoch is a research and policy analyst, Elizabeth Watson is energy and environment fellow, and Rebecca Wigg is a communications associate at RAP.

Category (Actual): 
Environmental
Coal
Permitting

The Homer City decision increases uncertainty—but rewards forward thinking.

Federal Feud

Byline: 

Bruce W. Radford and Michael T. Burr

Magazine Volume: 
Fortnightly Magazine - November 2012

When Revolutionary War veteran Daniel Shays led an attack on the federal Springfield Armory in January 1787—the spark that ignited the federalist movement—he scarcely could’ve guessed that now, 225 years later, his spiritual descendants would still be fighting that very same battle.

Author Bio: 

Bruce W. Radford (radford@pur.com) is Fortnightly’s publisher, and Michael T. Burr (burr@pur.com) is the editor-in-chief.

Category (Actual): 
The States
The Feds
Environmental

The jurisdictional battle rages on, with FERC and EPA squaring off against the states.

Cleanup Time

Byline: 

David Hoppock and Sarah Adair

Magazine Volume: 
Fortnightly Magazine - November 2012

Ongoing litigation over EPA rules raises compliance risks and costs. North Carolina utilities, however, benefited from the state’s forward thinking.

Category: 
Op Ed
Author Bio: 

David Hoppock (david.hoppock@duke.edu) is a research analyst and Sarah Adair (sarah.adair@duke.edu) is an associate in research at Duke University’s Nicholas Institute for Environmental Policy Solutions in Durham, N.C.

Category (Actual): 
Environmental
Coal

Retrofitting early protected North Carolina ratepayers.

Fortnightly's Top 10

The year’s most important legal and regulatory rulings.
Bruce W. Radford, Public Utilities Fortnightly
It’s a war out there — or rather, several of them. Fortnightly reports from the front lines of the conflict over U.S. energy and environmental policy.
Read Entire Article

Last Call

Byline: 

Michael T. Burr

Magazine Volume: 
Fortnightly Magazine - October 2012

Conditions are ideal for utility financing—but not forever. Although interest rates remain low, policy changes weigh on capital structures.

Image: 
Figure 1 - 10-Year Bonds
Figure 2 - 30-Year Bonds
Figure 3 - Utility Bond Tenors
Figure 4 - Utility & Power Ratings Snapshot
Rising interest rates and unknown dividend tax policies could be a headwind for utility stocks. –Brian Tate, Wells Fargo Securities
Utilities have a significant amount of capex planned in the near term, and bonus depreciation is not a funding strategy. –David Nastro, Morgan Stanley
There’s good reason to believe there will be a lot of M&A activity around contracted renewable assets in 2013. –Frank Napolitano, RBC Capital Markets
Sidebar: 
Sidebar Title: 
Pay It Forward
Sidebar Body: 

One way that some utilities have been getting ahead of market changes is by issuing equity to pre-fund costs they expect to incur later. This generally takes two forms: equity forward contracts, and mandatory convertible offerings. Examples include Pepco Holdings, which sold about $350 million in shares on a forward basis in March, and PPL, which sold about $270 million in April. Also, NextEra Energy issued $600 million in three-year, mandatory convertible bonds on May 1, and another $650 million in September.

Both approaches carry a premium, but they allow utilities to capture today’s high stock prices in a forward sale. And some issuers have found banks hungry enough to participate in equity deals that they’ll take a substantial haircut for the opportunity. (See “BofA loses $12m on bought convert,” IFR 1932, May 2012.)

However, terms likely will normalize as soon as the current confluence of forces drives utilities back into the equity markets in earnest.–MTB

Author Bio: 

Michael T. Burr is Fortnightly’s editor-in-chief. Email him at burr@pur.com.

Category (Actual): 
Strategy & Planning
Stocks / Equity Markets
Bonds / Debt Markets

Utilities are enjoying some of the best financing terms anybody’s ever seen. Is the party winding down?

Mitt Romney and You

Byline: 

By Michael T. Burr, Editor-in-Chief

Magazine Volume: 
Fortnightly Magazine - September 2012
The Republican nominee’s energy plan doesn’t say much about electricity or natural gas. But what it does say should sound familiar to anyone who’s followed energy policy for more than four years.
Category: 
Frontlines
Author Bio: 

Michael T. Burr is Fortnightly’s editor-in-chief. Email him at burr@pur.com

Category (Actual): 
The Feds
Energy Policy & Legislation
Environmental

Bold plan for independence, or more partisan overreach?

Regulatory Gordian Knot

Byline: 

Miranda Yost

Magazine Volume: 
Fortnightly Magazine - July 2012

New environmental requirements under the Clean Water Act (CWA) will add to the already complex burden of compliance for power plants. As the Environmental Protection Agency moves forward with cooling water and effluent standards, utilities and generators will have to deal with overlapping rules and conflicting policy goals.

Image: 
Author Bio: 

Miranda Yost is an attorney in Hunton & Williams LLP’s Richmond office. Her practice focuses on environmental law and regulation.

Category (Actual): 
Environmental
Energy Policy & Legislation

EPA’s new water, waste, and air regulations complicate power plant compliance.