It’s been a while since my last post. However, this article was too good not to share. For those familiar with the utility space, unlike competitive firms, a utility’s authorized earnings (i.e., rate base times rate of return) are an input in determining rates rather than the result of net revenues exceeding operating expenses. Rate base growth, thus, is the key read more…
Author: Mike Athanas
EPA Power Plant Rule: Part 2
In a prior blog, I observed that EPA’s “go-it-alone” policies to force carbon emission reductions from existing power plants would likely have untended consequences, such as less reliable, less affordable electricity. I also questioned EPA’s reliance on nascent carbon capture technology to bolster its claim that many existing plants can remain in operation. These concerns were affirmed in the comments read more…
Regulatory Commissions
Regulation plays an important role in determining the cost and quality of utility services. Thus, participating in the regulatory process is an essential strategy for pro-actively managing your company’s electricity and natural gas costs. All regulatory commissions determine: (1) the utility’s overall revenue requirement or cost of service to provide the utility a reasonable opportunity to earn a reasonable return read more…
Recipe for Failure?
In last week’s blog, I reported that the EPA had proposed a rule requiring the use of carbon capture and hydrogen for new and existing power plants. I also observed that neither technology has yet to be successfully deployed at scale, and neither can be characterized as the best available technology. If adopted, the proposed rule would make it all read more…
NERC Call To Action
With the recent harsh winter storm disruptions in its rear-view mirror, NERC issued its first ever top-level call to action on winter reliability (see article 1 below). This level 3 action (the highest alert level) calls on generation and transmission owners to report their winter weatherization plans by October 6. With the continued retirement of dispatchable generation, it is no read more…