POWER

The power industry has not done a good job grooming and mentoring the next generation of leaders and, as a result, is facing a leadership gap as the current generation approaches retirement, two executive search professionals told MANAGING POWER. While prospects for entry-level recruitment have improved, it will be five to 20 years before this cohort is ready to lead. In the near term, a renewed focus on grooming future leaders is critical.

Duke Energy and Progress Energy customers would not shoulder charges for costs of about $450 million related to the utilities’ proposed $26 billion merger if the North Carolina Utilities Commission (NCUC) speedily approves the deal, according to an agreement between the companies and the state regulatory body that was disclosed Monday.

Lack of customer participation—or outright customer resistance—is likely to kill at least one of your utility’s strategic initiatives. Perhaps it already has. But utilities can take a variety of easy steps to prevent the wounding or premature death of strategic initiatives such as smart meters, new rate and efficiency programs, or capital construction projects.


Section 203 of the Federal Power Act requires certain mergers and acquisitions to be “consistent with the public interest.” Since its 1996 Merger Policy Statement, the Federal Energy Regulatory Commission has applied this standard by assessing a merger’s effect on competition, rates, and the effectiveness of regulation. Does its approach need updating?

Utility-scale solar generation projects require significant upfront expenditures on photovoltaic panels and other equipment. The success of such projects largely depends on whether the system performs as promised by the manufacturers. This puts a premium on properly evaluating and effectively negotiating equipment warranties.

One of the most important communication skills for leaders and managers is listening.    In your professional life, listening is at the heart of effective leadership, and in your personal life, listening is an act of love.

Washington’s greenhouse gang has learned that global warming is a losing issue. They’re back with a new strategy.


Despite a quiet 2011, this year promises to be one of the biggest for power industry mergers in quite some time—if FERC lets it happen.

A three-judge panel of the U.S. Court of Appeals for the District of Columbia heard oral arguments last week in a case that examines whether the Nuclear Regulatory Commission (NRC) should be required to continue the licensing process for the Yucca Mountain nuclear waste repository proposed for Nevada.

No timetable has been set for the restart of the San Onofre Nuclear Generating Station (SONGS) despite “erroneous reports” in the media that referred to June dates, Nuclear Regulatory Commission (NRC) Chair Gregory Jaczko said on Monday.

Texas will have 74 GW of generation resources available this summer, including nearly 2 GW of capacity that had been mothballed—but the Electric Reliability Council of Texas (ERCOT) still expects tight reserves and expects calls for conservation to deter rolling blackouts, the Texas grid operator said last week.

Scaling back and outright expiration of government subsidies will make financing renewable energy projects more difficult in the future, according to experts at the law firm of Mintz Levin Cohn Ferris Glovsky and Popeo. But there will still be a greater appetite for renewables than there is supply, so it should still be possible to find the funds to build the projects.

Vermont’s House last week voted 10–36 to give final passage to a bill that could make the state the first in the nation to ban the practice of hydraulic fracturing for natural gas.

Consider state clean energy funds as potential replacement funding sources for future clean energy projects.

A new report funded by the Solar Energy Industries Association (SEIA) that examines historical and current federal incentives in energy markets suggests that current solar industry incentives are consistent with previous development-stage energy sources subsidized by the U.S. government.

The end of the long-running flap over access to markets for rare earth minerals may be in sight, driven by a combination of political and diplomatic pressure at high levels and the normal workings of the marketplace.


Integrys Energy Group subsidiary Wisconsin Public Service Corporation (WPS) on Monday filed for a Certificate of Authority (CA) from the Public Service Commission of Wisconsin (PSCW) to install Regenerative Activated Coke Technology (ReACT) at its 321-MW Weston 3 plant.

Spanish wind turbine manufacturer Gamesa on Monday said it would start the permitting process for the installation of its first offshore prototype, the 50-Hz G128-5.0 MW at Arinaga Quay in Spain’s Gran Canary Island—not Cape Charles, Va., as it had initially proposed. The decision was driven by technical and wind resource considerations, offshore market trends, and investment return criteria, the firm said.

By Kennedy Maize Washington, D.C., 5 May 2012 — A Federal Energy Regulatory Commission financial audit finds that the North American Electric Reliability Corp. is failing to focus its work on the new, mandatory electric grid reliability powers Congress gave it in the 2005 Energy Policy Act. Instead, says the FERC staff audit released May […]

By Thomas W. Overton, JD The news blogosphere was briefly contorted earlier this week by a study published in Nature Climate Change that appeared (to some laymen, at least) to suggest that large-scale wind farms were contributing to global warming. Naturally, given the intersection of several hot-button issues (renewable energy and climate change), and the […]

Canadian energy firms TransAlta, Capital Power, and Enbridge last week scrapped plans for the much-watched Project Pioneer, a joint effort the companies were to undertake with the Canadian federal government and Province of Alberta to demonstrate commercial-scale viability of carbon capture and storage technology (CCS).

Duke Energy and some of the Indiana’s key consumer groups on Friday reached a settlement agreement that resolves a disagreement concerning the utility’s consumer-paid cost overruns for its 618-MW integrated gasification combined cycle (IGCC) plant at Edwardsport, Ind. The $3.3 billion coal-fired plant is almost complete and on schedule to begin operations this fall.

The nation’s complex, patchwork system of regional and local power plants, power lines, and transformers is in the worst shape it has ever been, with 70% of transmission lines and power transformers aged more than 25 years, and 60% of the nation’s circuit breakers currently more than 30 years old, suggests new report from the American Society of Civil Engineers (ASCE). At least $566 billion will be needed to revitalize the grid through 2020, the group warns.

Small-scale technology tests by the U.S. and Japan in the North Slope of Alaska have extracted a steady flow of natural gas from methane hydrates, the U.S. Department of Energy (DOE) said on Wednesday. If new research efforts to conduct long-term production tests in the Arctic and Gulf Coast are successful, they could unlock a “vast, entirely untapped resource” that would hold significant enormous potential for U.S. energy security, the agency said.

The events that left 2.7 million power customers in Southern California, Arizona, and Baja California in the dark on Sept. 8, 2011, stemmed from operating in an unsecured state due to inadequate planning, a lack of observability, and awareness of system operating conditions on the day of the event, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) concluded in a report released on Tuesday.

Costs for Progress Energy’s two news reactors proposed for Levy County have surged to between $19 and $24 billion, and the first unit could come online almost three years after initially planned, the company said in a statement on Monday. The North Carolina–based company had previously said the first unit at Levy would enter service in 2021 at an estimated cost of $17 billion to $22 billion.

Member states of the European Union (EU) will get a few more months to complete tests on their 147 nuclear power plants, and a final stress test report will be completed this fall—not this summer as initially expected— before any new nuclear safety laws are proposed, EU Energy Commissioner Günther Oettinger said last week.

Europe’s continuing drive toward sustainable energy does not rule out a new generation of coal power plants to replace those scheduled to close by 2015.

Lakeland Electric’s C.D. McIntosh, Jr. Power Plant is a microcosm of the entire power generation industry. On a single site is a once-baseload coal-fired plant that is now operating fewer hours plus a peaking gas-fired combined cycle plant that has swung to baseload operation. A complete controls upgrade of the gas-fired plant last year prepared the plant for its expanded role in producing electricity for this 108-year-old public power provider.

Natural gas–fired fleets comprising diverse turbine unit types are operating their units more these days because of the historic low price of natural gas. With increased operating hours, fleet owners are challenged to find the best ways to manage their SCR catalyst systems.