Data and experience show that serving customers well translates into better rate case outcomes. Conversely, poor performance starts a downward slide. J.D. Power and Associates research shows the correlation between customer service and financial returns.
Author Bio:
Andrew Heath, Senior Director, Energy Practice, J.D. Power and Associates
How customer satisfaction drives returns on equity for regulated electric utilities.
Utilities in the Midwest ISO want greater access to sell into PJM’s lucrative market. But that might require a virtual merger of the two RTOs — a move rejected seven years ago as too costly, and perhaps still impractical today.
Author Bio:
Bruce W. Radford is publisher of Public Utilities Fortnightly.
PJM and MISO ran from the altar once before. Now there’s talk of a shotgun wedding.
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.
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.
Lacking regulatory oversight, financial hedges turn into risky speculation.
Byline:
By Sherman Elliott and Ralph Zarumba
As the industry resumes major capital-spending programs, utilities and their stakeholders are rightly concerned about the effects on prices. Traditional regulatory approaches expose utilities to risks and costs, and can bring rate shock when capital spending finally makes its way into customers’ bills. Pre-funding investments can provide a smoother on-ramp to bearing the costs of a 21st-Century utility system — but it also raises questions for utilities to address.
Author Bio:
Sherman Elliott is an independent consultant and formerly was a commissioner on the Illinois Commerce Commission. Ralph Zarumba is a director in Navigant’s energy practice.
Re-starting the Big Build calls for revisiting cost-recovery mechanisms.
Byline:
By Michael T. Burr, Editor-in-Chief
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.
Author Bio:
Michael T. Burr is Fortnightly’s editor-in-chief. Email him at burr@pur.com
Bold plan for independence, or more partisan overreach?
(July 2012) Thanks for your enlightening editorial about the problems of feed-in tariffs for photovoltaic installations and the distortions they are causing in cost responsibilities among electric utility customers. While these issues are an immediate and growing concern, an entirely different set of problems will emerge over the next decade as the share of renewables in total generation approaches the high levels being dictated by most regulatory authorities.
Byline:
Hyde M. Merrill and Richard D. Tabors
In competitive power markets based on locational marginal pricing (LMP), the facts sometimes conflict with popular belief. Most notably: 1. When there’s congestion, the books don’t balance, and ratepayers always pay more than the generators receive. The difference is sometimes called “congestion cost.” 2. Congestion in a competitive market doesn’t necessarily increase ratepayers’ costs; and 3. Reductions in LMP are incomplete and sometimes misleading measures of economic benefits of transmission upgrades. These three facts and their implications should be considered in transmission planning, market design, tariffs, and system operations.
Author Bio:
Hyde M. Merrill (hm@merrillenergy.com) is the proprietor of Merrill Energy, LLC. Richard D. Tabors (rtabors@crai.com) is a vice president at CRA International, and previously was a faculty member at MIT. The views in this article are solely the authors.’ They acknowledge the insightful help of J. Dan Watkiss.
Competitive market problems and their implications for customers’ net costs.
State commissions can select from a toolkit of regulatory approaches to promote desired utility cybersecurity behavior. One approach is to allow the industry to selfregulate, and another approach is to leave the job to the federal government. But sofar, neither the industry nor the federal government have developed and implemented adequate standards for securing the smart grid. States can play a constructive role—albeit perhaps not in the form of traditional regulation.
Author Bio:
Nancy Brockway is the principal of independent consultancy NBrockway & Associates. Previously she was a commissioner with the New Hampshire Public Utilities Commission, and served on commission staffs in Massachusetts and Maine before that. Brockway acknowledges the insightful help of Alison Silverstein, but retains sole responsibility for errors and opinions.
The regulator’s role in promoting cybersecurity for the smart grid.
Xcel Energy’s Teresa Mogensen discusses public-private collaboration
Michael T. Burr
One of the most ambitious transmission projects in America today is CAPX2020. In this second of two exclusive interviews, Fortnightly's Spark talks with Teresa Mogensen, Xcel Energy’s vice president of transmission, about how the investor-owned utility collaborated with public-power utilities to develop a complex set of lines and a solid investment for shareholders.
Great River Energy’s Will Kaul discusses collaborative development
Michael T. Burr
One of the most ambitious transmission projects in America today is CAPX2020, a series of lines in Minnesota and surrounding states. In this first of two exclusive interviews, Fortnightly's Spark talks with Will Kaul, Great River Energy’s v.p. of transmission, about how the project managed to succeed where others have failed.
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