The ScottMadden Energy Industry Update – August 2014
We are pleased to announce our Summer 2014 issue of THE SCOTTMADDEN ENERGY INDUSTRY UPDATE. This semi-annual publication features our view of recent significant events and emerging trends in the energy industry.
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The energy and utility industries continue to anticipate and react to potential fundamental shifts in the 100+ year-old model of investment, regulation, and earnings. Policy and regulatory changes are big factors driving the design of the new landscape. For many of these changes, significant investment in existing and new infrastructure is needed across all parts of the energy value chain. And by the way, load growth is no longer, so investment and cost recovery are uncertain. Highlights include:
|View from the Executive Suite (click here)
||Utility Industry Concentration Lags Other Capital-Intensive Industries
While utility consolidation continues, the sector lags other industries because of regulatory constraints and inherent “local” nature of energy infrastructure.
|Energy Supply, Demand, and Markets (click here)
||Fossil-Fired Generation: Ninth Inning for Some Units
With more stringent mercury emissions regulations taking effect in 2015, along with the possible reinstatement of the Cross-State Air Pollution Rule, a large amount of fossil-fired generation is slated to retire in 2015 and 2016.
|Managing the Energy and Utility Enterprise (click here)
||The Polar Vortex: Can We Avoid Trouble Next Winter?
In January 2014, extreme cold weather affected natural gas and electricity markets in the upper Midwest, the Northeast, and the Southeast for several days. For some regions, particularly the Mid-Atlantic, loss of available power generation nearly led to emergency conditions and gas pipeline capacity utilization was pushed to its limits.
|Rates, Regulation, and Policy (click here)
|Competitive Transmission: Why Is This So Hard?
Order 1000 is introducing competition to the transmission portion of the electrical grid and substantially changes the landscape for transmission development.
We hope you will find THE SCOTTMADDEN ENERGY INDUSTRY UPDATE to be a useful and informative resource. If you would like to discuss our observations in greater detail or have us present them or our views on other industry or management issues to your executive team, please contact us. View our Energy Practice area.