April 11, 2008

Skills in high technology and sophisticated disciplines hold lots of sway in the New Economy, attracting the younger set that tends to be more educated and in search of upward mobility. But are utilities able to draw the best and brightest?

The power sector is marching forward. The general consensus, however, is that it has done little to make itself appealing to recent graduates. The issue has become accentuated as the industry wrestles with how to replace its now aging workforce. Indeed, challenges abound and notably the transfer of critical knowledge.

March 26, 2008

Two lawsuits intend to de-energize parts of the Energy Policy Act of 2005. Environmental and conservation groups are saying that broad transmission corridors that have been authorized by the law are illegal, claiming they allow utilities to bypass state jurisdiction, environmental standards and private property rights.

By expanding the national infrastructure, policymakers also hope to modernize it and bring it in line with a 21st Century economy. Those in the trenches repeatedly express that the capacity of the transmission system is inadequate and will be unable over a sustained period to support huge increases in power demand while also maintaining that the grid is outdated. The issue has been compounded by the difficulties in both winning permits and the necessary capital, thereby increasing the risks of large-scale reliability problems.

March 24, 2008

Dominion Resources is about to make a major investment in its pipeline infrastructure. Its Ohio subsidiary has filed an application with Ohio regulators to replace nearly 20 percent of its 21,000-mile pipeline system over 25 years at a current cost of $2.6 billion. Once approved, modernization will begin next year.

The utility's undertaking is not uncommon. Quite a bit of the infrastructure was laid in the 1950s and 1960s and over time, the lines have corroded. Moreover, the growth in natural gas-fired power plants has increased and put pressure on developers, who say they need greater access to gas-rich areas as well as more pipeline capacity.

March 19, 2008

The American economy may be in or near recession. But certain elements of the energy economy are poised to take off. Demand response technologies that allow grid operators to curtail electricity use during peak periods is one of those segments.

The sector is now in its early stages. But with the overall emphasis on energy conservation and air quality, the market for demand response is developing at a fast pace and a lot of players want to participate in that expected growth. The jockeying for position is well underway, with smaller privately-held enterprises trying to occupy market share along with better-established businesses such as General Electric, Comverge and EnerNOC.

March 14, 2008

No one ever said that the re-emergence of nuclear power would take the fast lane. The road, in fact, is filled with potholes that include some high profile deferments and ever-increasing capital costs.

Despite the delays, the long-term underlying fundamentals are favorable to the nuclear industry. Newer reactor designs are not only considered to be even more productive but also to have safety redundancies to give communities greater assurances. Emissions from nuclear energy, meantime, are negligible when compared to fossil fuels -- an important factor if one considers that regulatory pressures to limit greenhouse gases that cause global warming will only intensify.

March 5, 2008

When power outages spread 300 miles across Florida, dark visions occurred. It all seemed reminiscent of the 2003 blackout that left 50 million people in the United States and Canada without electricity -- a scenario that undoubtedly could occur again.

Utility planners have long warned that the nation's power infrastructure is not only stretched thin but also that is running on outdated technologies. Given the projected rise in electricity demand, the nation is still short generation and transmission. Improvements, no doubt, have occurred in some regions, but in others the problems are real and will ripple through their local economies.