May 14, 2010

The recession's end is signaling the beginning of changes in the utility world. Declines in demand along with those of whole electric prices are prompting companies to revise their business strategies.

Now some notable players are buying and selling assets. The goal is to trim debt, increase revenues and raise stock prices -- as well as to prepare for the next sustained economic cycle. While mergers often take place during good times and when companies have ample cash to spend, the recent wave of activity is a reaction to what has been a relatively stressful time.

May 05, 2010

Electrical network design is a complex, continuously evolving process. Energy Central's Sierra Energy Group says that as many as 150,000 people are working on this arcane pursuit.

Many of these people have engineering degrees that enable them to deal with the complex mathematical and scientific calculations necessary to deal with America's complex and constantly growing electrical grids. Whenever a new generation source comes online, engineers have to design the system that will take the power from the station, get it to the correct voltages for the transmission system, specify all the proper equipment and supervise the construction. At the other end of the grid, when a new subdivision -- or even one house -- is added, similar steps are taken at lower voltages.

April 19, 2010

Natural gas has been riding high ever since the most recent estimates say that it can feed the country's electric generators for another 100 years. But it got an even bigger boost when President Obama vowed to end a two-decade long ban on drilling throughout much of the Outer Continental Shelf.

The proposal is part political and part economic. The administration came to office on the promise that the offshore energy reserves would play a part in the country's energy picture but that the oil and gas found there would be sensible -- not a pedal to the metal strategy. As such, it reasons that the newfound supplies could held erode the country's dependence on foreign sources as well as raise money from offshore leases.

April 12, 2010

Nuclear energy development in this country is getting a big boost now that the nuclear loan guarantees are being processed. Southern Co., which snagged the first $8 billion of what will be $54 billion pie, still has to wait about a year for the Nuclear Regulatory Commission to okay its license application.

As part of his green agenda whereby the country rescues itself from economic despair and the hazards of climate change, President Obama has started to come on strong for nuclear energy that has relatively few greenhouse gases associated with it. It's a simple but realistic equation: Besides coal, nuclear energy is the only other source of base-load power that can run continuously and serve large populations. By guaranteeing the loans, the government has agreed to pay them off if any private builder should default.

April 07, 2010

Coal's long term future is up in the air. But if it is to continue to serve the American economy and to provide the preponderance of fuel that generates electricity, it is clear that the utilities using it will have to make it much cleaner.

The status quo won't do. Utilities that rely on coal recognize the pressures on them. Some are now investing in the kinds of technologies that seek to reduce emissions and to capture carbon emissions that many say are tied to global warming. To achieve such goals, however, takes time and money -- issues that both state and federal lawmakers must acknowledge and subsequently incorporate into energy laws.