Business

  • POWER Digest (October 2012)

    Chile Supreme Court Strikes Plans for $5B Coal Plant. Chile’s Supreme Court on Aug. 28 rejected the $5 billion Central Castilla thermoelectric power plant planned by Brazilian firm MPX Energia and Germany’s E.ON, citing environmental reasons. Developers argued that the 2,100-MW plant is needed by Chile, the world’s foremost copper producer, which struggles with high […]

  • Are Economics Trumping Regulation?

    The fate of coal-fired generation remains fluid as owners weigh environmental rules, the effect of low natural gas prices, and the shifting cost of investing in emissions control technology. An analysis of generating unit data suggests that smaller, older, less-efficient, and less-frequently dispatched assets are most vulnerable to retirements. Recently accelerated retirement dates for some units indicate that economic factors are a more important determining factor than pending environmental mandates

  • China’s Power Generators Face Many Business Barriers

    China’s five largest power generators own half of that country’s power generating assets. Faulty policies and the rapidly changing global economy have made it difficult for these companies to fulfill the high expectations arising from enactment of the Power System Reform Scheme of 2002

  • THE BIG PICTURE: Regulation Road

    To view a larger version of this graphic, download the file here.

  • Unit Cycling Makes the Impossible the Ordinary, EUCG Members Say

    Low natural gas prices and still-soft electricity demand are forcing low-load and cycling operations at traditionally baseloaded coal units across the country. The resulting challenges were top of mind at the Electric Utility Cost Group’s (EUCG’s) fall meeting in Denver last week. One member of the EUCG’s fossil generation committee from an Ohio Valley utility said that cycling and low-load operations pose challenges for one of his company’s 1,300-MW coal-fired plants that “two years ago we wouldn’t have considered possible.”

  • Chinese Hackers Blamed for Breach of Telvent’s SCADA-Related Network

    Cyber attacks on the utility industry are no longer theoretical. According to multiple sources, smart grid technology vendor Telvent told U.S., Canadian, and Spanish customers on Sept. 10 that hackers had broken through its firewall and accessed “project files” related to its OASyS SCADA system. On Wednesday, reports surfaced that, based on the perpetrators’ “digital fingerprints,” the attack appears to be the work of a well-known Chinese hacker group.

  • NYISO Braces for Generation Gap By 2020

    About 1,792 MW of existing generation in the New York bulk power system is expected to retire or be mothballed over the next decade, and if demand heightens as has been forecast by 2020, the state’s grid could see a 1,000-MW generation gap, the New York Independent System Operator (NYISO) warned in its recently released 2012 Reliability Needs Assessment (RNA).

  • SDG&E Settles with Feds on 2007 California Wildfire Claims

    San Diego Gas & Electric (SDG&E) has agreed to pay $6.4 million to the U.S. Forest Service to settle claims related to one of the largest wildfires in California history. The utility has already paid more than $1 billion to settle thousands of lawsuits after state investigations concluded that the company’s high-voltage power lines produced electrical arcing and ignited the 2007 Witch Creek Fire that ravaged 198,000 acres near Santa Ysabel in San Diego County, Calif.

  • NERC Cyber Security Rules: Evolution or Brownian Motion?

    Making sense out of the NERC cyber security rules is inherently difficult; the ever-changing regulatory scene makes it even harder. With Version 4 now in hand, Version 5 is on the way.

  • Rare Earths: China Strikes Back

    Facing increasing competition and a slumping economy, China is moving to strengthen its already robust monopoly over rare earth minerals vital to many advanced energy technologies.


  • Helpful Tips When Terminating an Employee

    Firing a worker is not an easy task, something no conscientious manager takes lightly. And the decision can come back to bite. But it is sometimes necessary and there are ways to do the job that minimize the risks to the organization.


  • Energy PR—Forget Facts, Show Value

    Whatever utility communicators are selling these days, it doesn’t look like customers are buying. And the problem likely will get worse before it gets better.

  • Understanding Consequential Damages

    One set of legal provisions that anyone in a business or operational role should be aware of is the “consequential damage waiver.” These provisions dictate two of the most vital aspects of any contract: What can you recover if the other party breaches the contract, and what do you have to pay if you do?

  • Trend—How Strong Is the Urge to Merge?

    After a slowdown in the first half of 2012, merger activity in the power sector may be heating up again. One surprising target given the current environment: Coal.

  • Regulators Cannot Move Fast Enough to Protect Grid, FERC Warns

    In testimony before a congressional subcommittee, Joseph McClelland, director of the Federal Energy Regulatory Commission (FERC) Office of Electric Reliability, enumerated the ways in which the U.S. regulatory system is ill-equipped to deal with time-sensitive threats to physical and cyber assets of its power system.

  • Western Cuba Goes Dark After Power Line Disruption

    Residents of Cuba’s capital Havana and millions of others living in an area stretching 450 miles from the nation’s southeastern province of Camaguey to the westernmost province of Pinar del Rio experienced a massive blackout on Sunday night caused by an "interruption" in a 220-kV transmission line, the government said.

  • POWER Digest (September 2012)

    Belgian Cabinet Votes to Prolong Tihange 1 Reactor Life. Belgium’s cabinet in early July approved plans by GDF Suez subsidiary Electrabel to keep the 1975-built Tihange 1 reactor operating until 2025—almost a decade longer than planned—but it rejected a proposal to delay by a year the planned 2015 closure of Electrabel’s two 1975-built reactors at […]

  • Chile’s Power Challenge: Reliable Energy Supplies

    Droughts, unreliable gas imports, and protests against proposed projects have hampered the Chilean power sector and its largest economic driver, the copper-mining industry. Recent policies designed to foster more reliable supplies are a move in the right direction, but remaining obstacles are formidable.

  • Partners in Reliability: Gas and Electricity

    The natural gas and electricity industries have entered into an increasingly codependent relationship as coal-fired electricity gives way to natural gas–fired generation. Both industries are firmly committed to providing reliable service, although each goes about its business in different ways. Utilities, regulators, and stakeholders are searching for ways to align interests and expectations.

  • O&M and Human Stresses Caused by Low Gas Prices

    Plentiful supplies of low-cost natural gas have changed unit dispatch orders across the U.S., led to thermal stress–induced maintenance issues at cycling coal plants, and resulted in management challenges at coal and gas units alike. This scenario is unlikely to change so long as gas holds its competitive edge over coal.

  • Troubled Fort Calhoun Reactor Restart Delayed Again

    Omaha Public Power District (OPPD) has postponed restart of its troubled 478-MW Fort Calhoun nuclear plant for the third time since it was shut down 16 months ago. Restart of the reactor, located 19 miles north of Omaha, Neb., requires regulatory approval, and that is now tentatively anticipated early next year.

  • Exelon Withdraws Early Site Permit Application for Victoria County Reactor

    Exelon on Tuesday said it plans to withdraw its Early Site Permit (ESP) application for construction of a new reactor at an 11,500-acre tract of land southeast of Victoria, Texas, saying “low natural gas prices and economic and market conditions . . . have made construction of new merchant nuclear power plants in competitive markets uneconomical now and for the foreseeable future.”

  • Trade Representatives Request Investigation on U.S. Renewables in Global Context

    The U.S. Trade Representative on Monday asked the U.S. International Trade Commission (ITC) to investigate how U.S.-provided renewable energy services affect development of renewable energy projects worldwide. The ITC’s report, expected by June 28, 2013, will focus on the development, generation, and distribution of renewable energy—specifically onshore and offshore wind and solar energy.

  • On Katrina’s Anniversary, Generators and Regulators Respond to Hurricane Isaac

    Hurricane Isaac soaked the Gulf Coast of Louisiana and Mississippi after making landfall Tuesday night with sustained winds of up to 80 mph, leaving thousands without power in five states. On Tuesday, Entergy took its Waterford 3 nuclear plant offline as a precautionary measure.

  • Floating LNG: The New Revolution in Offshore Gas

    Gas production by hydraulic fracturing has upended the global energy markets, and talk of liquefied natural gas (LNG) exports has major producers astir. But on the horizon is another game-changer: enormous floating LNG platforms that could again reset the equation. 

  • Pipeline Problems Cloud Future of Gas Power

    These are heady days for gas-fired power, as record low prices have turned natural gas from an also-ran into possibly the leading source of electricity generation. But lurking in the background is a potential roadblock—the pipelines that bring gas to the plants, which have lagged behind in capacity. 


  • The Economics of Coal-to-Gas Switching

    Gas is up and coal is down. The why of it is not so clear, nor is the degree to which it’s likely to continue. Here’s a review of the nuts and bolts, which suggests coal may be poised for a comeback.


  • NRG Braves Headwinds in Replacing Aging California Plant

    Building almost any kind of power plant takes a lot of careful public relations. But NRG Energy has traveled a long and winding road in its attempts to replace a coastal plant in Southern California.

  • Quarterly Status Report on Global Gas Power Projects

    A review of the global gas power industry shows a slight dip in activity over Q1 2012, but some big projects are still in the works.
  • Report Ranks Nation’s Largest Generators In Terms of Air Pollutant Emissions

    A report that examines and compares sulfur dioxide (SO2), nitrogen oxides (NOx), mercury, and carbon dioxide (CO2) emissions of the 100 largest power producers in the U.S. based on 2010 generation numbers says those companies produced 88% of the nation’s total power plant emissions of those pollutants.