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.

June 07, 2010

Getting consumers to learn how electricity is priced is a good thing. That could lead to efficiency and conservation, resulting in lower rates. That's understood. But do those benefits outweigh the costs and will investors step up?

The issue is now before a multitude of state regulators who must decide how the assets that make up the intelligent utility will get financed. Utilities oftentimes are making the investments after getting regulatory approval to pass the cost of them along to consumers -- just as power plants are handled. Indeed, constructing a grid that allows utilities and consumers to talk with one another might possibly cut down on peak energy consumption and thereby avoid the build-out of expensive infrastructure.

May 07, 2010

Nuclear energy's prospects are even better now that the Obama administration has promised $4 billion for uranium enrichment projects. That's double the previous limit -- a move meant to complement a separate loan guarantee program to promote the development of nuclear power in this country.

Uranium, of course, is the fuel used to run nuclear power plants. At issue is the centrifuge technology, long used by European plants but fairly uncommon in the United States. Here, the efforts are centered on advancing older and more energy intensive models -- all to accommodate two decades of underinvestment in uranium mining and enrichment.

April 26, 2010

Big banks may get reined in. But will that harm the utility sector, which benefits from the capital that those lenders bring?

Congress is now considering legislation to ban those financial institutions from participating in speculative activities that are not tied to the basic and federal-backed services that they offer. So, those investment banks that trade commodities for their own advantage so as to increase their revenues would be barred from doing so. But those that trade on behalf of their industrial clients would be allowed to continue.

April 16, 2010

Before his inaugural, Barack Obama spoke of healing the country's divisions and of lifting its spirits. But more than a year later, those lines have become entrenched, best illustrated by the bitter healthcare vote. That has left an irreconcilable gash between the two parties that might make future agreements impossible.

But the recent acrimony will not deter the president from tackling another contentious subject: climate change. His political tactics, however, will evolve. Instead of relying on floor leaders to push through his policies, the president is working in advance of a vote to make key concessions to opponents.