The California Power Exchange will not die. After a year and a half of bankruptcy and the disappearance of anything resembling a market for electric power in California, the PX is still around. This article summarizes the soap operatic nature of its ongoing existence. The article does one thing that drives me nuts — it …
A period of extreme stress in energy markets because of trading liquidity and debt problems at energy companies. There is value there, but it’s hard to see right now with so much uncertainty.
Between writing a book chapter on retail pricing, demand responsiveness and dynamic pricing in electricity, and having a contract accepted on a house, I lost last week. Wow. More to come over the next few weeks on dynamic pricing and the importance of demand response in getting efficient, integrated wholesale and retail electricity markets. And, …
Berkshire Hathaway has provided financing for Williams. His credibility, integrity, and vision are things that the electricity industry needs right now, as well as his capital. He also knows a bargain when he sees it. Here is a more thorough article on the deal from TheStreet.com.
The press release on it is 20 pages, the design proposal runs to 800 pages. The comment period extends to 21 October, so expect to see some comments here as I process and analyze this proposal.
The Neptune project is a privately-funded, high-voltage, direct current (yes, DC, not AC!) project to connect Manhattan and Long Island with other areas that have larger supplies of generated power. This type of interconnection of markets is a driving force in reducing transaction costs and increasing efficiency in energy markets. The progress of this project …
According to this Bloomberg News article, FERC will announce rules today to govern cross-regional wholesale electricity sales, including market monitoring and pushing “regulated utilities to cede some authority over transmission lines.” This has been coming for a while, with lots of industry and public comment time. I hope Commissioner Massey’s quote in the article is …
This Financial Times article analyzes Dynegy’s recent sale of a pipeline it acquired from Enron to bolster its balance sheet and reduce its debt. Dynegy’s stock price increased accordingly yesterday. The first paragraph of the article says it well: When Dynegy snatched the Northern Natural Gas pipeline company from a collapsing Enron for $1.5bn, it …
Schumpeter’s Perennial Gale Of Creative Destruction Read More »
I don’t know whether or not Perot Systems actually did share confidential information about the structure and design of the California electricity market, but as this Financial Times article indicates, what matters is what investors believe, and how they act on those beliefs. As the article says, investors are not convinced by the arguments that …
In this press release titled “LADWP Funds Innovative Energy Efficient Technology Ideas”, the Los Angeles municipal utility announced an initiative to fund innovative energy-efficiency technologies that will particularly reduce peak-load demand. You know, if you just allow for market-based real-time pricing, even just for large industrial users, LADWP wouldn’t have to spend $750,000 on this …
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