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PUR Guide 2012 Fully Updated Version

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Georgia Power

Southern Sees the Light

How conventional utilities may drive the solar energy transition
Ken Silverstein
More than 95 percent of consumers will still be connected to the centralized network for the foreseeable future. But it won’t diminish the trend toward distributed generation – and the attempts by both unconventional parties and power companies from getting into related businesses.
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Vendor Neutral

Magazine Volume: 
Fortnightly Magazine - December 2012

(December2012) KC Electric Association expects soon to finalize installing a Sensus FlexNet network and iCon A electric meters to serve about 4,000 residential and small commercial members across a 5,000-square-mile territory in rural Colorado. Itron and C3 Energy formed an alliance to integrate and jointly market an energy management solution to North American utilities. And others...

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KC Electric Association is installing Sensus meters in rural Colorado.
PG&E became the first utility to deploy Picarro Surveyor mobile devices for gas leak detection.
Georgia Power started up the final unit at its new McDonough-Atkinson combined-cycle plant.
Siemens will supply a SGT6-5000F gas turbine for a new power plant in Manaus, Brazil.
Category: 
Vendor Neutral
Category (Actual): 
Generation & Markets
T&D Grid
Finance

Vendor Neutral

Magazine Volume: 
Fortnightly Magazine - November 2012

Calpine signs PPA with Public Service Company of Oklahoma; TransCanada and Ontario PowerAuthority agree to develop 900-MW gas-fired power plant; Panda selects Siemens to build combined-cycle plant; Progress Energy retires coal plants dating from 1923; Southern Company and Turner acquire 30-MW PV project; PSO begins smart meter pilot rollout; Southern California Edison contracts with Corix to install smart meters; Iberdrola USA hires Burns and McDonnell to review grid infrastructure. Plus contracts and announcements from Itron, eMeter, Echelon, Quanta Services, DNV, Metadigm, Landis+Gyr, and others.

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Homer Electric Association contracted NAES Power Contractors to install a GE LM6000 gas turbine at its Soldotna plant in Alaska.
TransCanada plans to build a 900-MW gas-fired power plant on the site of Ontario Power’s Lennox generating station near Bath in eastern Ontario.
Ocean Renewable Power began delivering electricity to Bangor Hydro from the Cobscook Bay tidal project. ORP says it’s the first grid-connected ocean energy project in the United States.
Progress Energy officially retired two coal-fired power plants, including the utility’s first coal-fired facility, the Cape Fear plant, built in 1923.
Category: 
Vendor Neutral
Category (Actual): 
Generation & Markets
T&D Grid
Finance

Transactions (October 2012)

Magazine Volume: 
Fortnightly Magazine - October 2012

Exelon sells plants in Maryland and Cali; Mitsui buys into Viridity; Duke issues $1.2B; plus deals at TVA, Xcel, PG&E, etc. totaling $4.9B.

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Category: 
Transactions
Category (Actual): 
Transactions
Mergers & Acquisitions
Bonds / Debt Markets

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.

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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?

Vendor Neutral

Magazine Volume: 
Fortnightly Magazine - October 2012

Constellation completes 16.1 MW PV project in Maryland; Ikea commissions 31st solar project, reaching 38 MW installed; IPL and MidAmerican install $545 million scrubber in Iowa; DTE partners with Enbridge and Spectra on pipeline for Utica shale gas; plus contracts and announcements from Dominion, Sempra, Southern Company, AEP, EPRI, Itron, Landis+Gyr, Opower and others.

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Spent fuel at AEP’s Cook nuclear plant will move to a recently completed on-site dry-cask storage facility.
IKEA’s Bloomington, Minn., rooftop photovoltaic array—its 31st U.S. solar project.
Suntech says its new utility-scale solar module, the Ve-Series, is certified to withstand extreme winds and snowfalls.
The C.P Crane coal-fired generating plant, one of three Maryland power plants that Exelon will sell to Raven Power Holdings.
Exelon sold its stake in five Constellation power plants in California, including the Chinese Station biomass facility.
Category: 
Vendor Neutral
Category (Actual): 
Generation & Markets
T&D Grid
Finance

People (July 2012)

Magazine Volume: 
Fortnightly Magazine - July 2012

Southern Company announced changes in the company’s management team. Great Plains Energy and Kansas City Power & Light (KCP&L) appointed Scott Heidtbrink as executive v.p. and COO of KCP&L and greater Missouri operations. NV Energy announced two senior leadership appointments. Pacific Gas & Electric (PG&E) appointed Jesus Soto Jr. as senior v.p. of gas transmission, operations, engineering, and pipeline integrity. And others...

Category: 
People
Category (Actual): 
People

Rooftop Tsunami

Byline: 

Michael T. Burr, Editor-in-Chief

Magazine Volume: 
Fortnightly Magazine - July 2012

A growing wave of rooftop PV projects is starting to look ominous to some utilities. Will lawmakers accept utilities’ warnings at face value—or will they suspect they’re crying wolf?

Category: 
Frontlines
Sidebar: 
Sidebar Title: 
Transition to a PV World
Sidebar Body: 

Keeping the lights on in a world of mushrooming solar rooftops requires several key technology and policy developments. During the 2012 EEI Annual Convention, panelists on a session titled “Distribution 2020: Implications of a Rapidly Evolving Distribution Grid,” offered several suggestions for managing the transition.

Technology requirements:

• Bi-directional smart grid

• New safety protocols

• Uniform interconnection standards

• Integrated distribution management systems (DMS)

Policy requirements:

• Focus incentives on installations in preferred locations

• Push the limits of demand response with direct load control

• Plan holistically—account for the total costs of distributed generation

• Apply formula rates to keep utilities whole

• Accelerate depreciation appropriately

Author Bio: 

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

Category (Actual): 
Solar
The States
Smart Grid

Utilities sound the alarm as PV nears grid parity.