August 16, 2010

Keeping those air conditioners flowing is a summer necessity. But getting the most out of them has become national priority. The long-term goal is to equip utilities and consumers with the technologies they need to make better energy decisions.

While private entities are the most integral part of the mix, the Federal Energy Regulatory Commission is also emerging as a vital facilitator. When it comes to establishing smart grids, the national energy regulator's role is to set the agenda and to become a meeting place so that the stakeholders can advance their ideas. As such, FERC has said that improving reliability, increasing the use of green energy and enticing investors are among its highest objectives.

August 13, 2010

If energy consumption is a major standard by which to judge economic prowess, then China has joined the big leagues. The International Energy Agency now reports that China has surpassed this country to become the world's biggest energy consumer.

The distinction carries with it two implications. The first is that China now possesses unfettered weight in global markets while the second is that it carries new-found obligations to reduce its air emissions. While the Chinese are destined to supply most of their energy needs with coal, natural gas and oil for decades to come, they are nonetheless committed to building out their renewable and nuclear energy programs.

August 11, 2010

Carbon capture could become commercial within 10-15 years. And while it holds the potential to significantly cut heat-trapping emissions, it may be noticeably more expensive than current technologies and thereby cause consumers to pay more.

That's the primary findings of the Government Accountability Office, which concluded that current carbon capture and sequestration technologies would increase the cost of power by 30 percent to 80 percent, albeit it has greater potential to reduce carbon emissions than other ideas. The alternative to such progressive technologies is one that centers on improving efficiency gains, or reducing the amount of coal that is burned so as to limit emission levels.

August 09, 2010

When PPL won the auction to acquire E.ON's Kentucky utilities in April, the stock plunged nearly 10 percent and left many investors scratching their heads. In fact, the stock started its steep downward spiral a few days before the actual sale when the Allentown, Pa.-based company was named by E.ON as one of three potential buyers for the assets.

PPL trumpeted that it would increase its geographical diversification and expand its capital structure, but analysts noted that by adding more regulated electricity to its portfolio, PPL was only further reducing its leverage to profit from any upswing in the economy.

August 06, 2010

The transformation may now be gradual. But it will gather steam and change the way utilities produce and deliver their electricity.

If done properly, the smart grid that enables such progress could have profound implications. The movement is just now getting its legs. But just how it stabilizes and gains footing is a matter of debate: Some say it will be consumer demand. Others say that regulators must lead while some say it must be a collective effort.