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JUNE 2013 - VOL. 29 NO. 6 (Continued on page 2.) by Paul Ring, Energy Choice Matters, April 30, 2013 New England and New York could follow California in essentially re-regulating new build power generation through the use of regulator-directed procurements, Julien Dumoulin-Smith said in a note to UBS Investment Research clients. Dumoulin-Smith is executive director for UBS' US Electric Utilities & IPPs Group. "We believe the notion of competition for IPPs is fundamentally shifting," Dumoulin-Smith said in the research note titled "Evaluating the Competitive Landscape," which cites the potential for New England states and New York to follow California into a long-term procurement process for utility capacity and generation needs. With respect to retail, the note also cites a trend toward re-regulation versus deregulation. "With all of the discussion in recent years around how to effectively incentivize new capacity in merchant markets - and with nearly every market now contemplating a capacity-like mechanism - we see a Shock: UBS sees New England, New York susceptible to “re-regulation” of generation fundamental re-evaluation as to the merits and approach around 'restructuring' of power generation. We believe regions that are truly 'committed' to deregulation warrant premium cash flow multiples; while Texas (ERCOT) stands out at the top of our list, PJM remains near the top as well. Meanwhile, we see cash flows produced by IPPs in states such as California, New York, and New England as more risky given uncertainty around new supply - and possessing less upside, as 'new entrant' economics appear unlikely given states efforts to contract for capacity needs well in advance of price signals," Dumoulin-Smith said. "We believe states like New York could eventually pursue more formulaic approaches to the procurement of new capacity through efforts akin to traditional 'Integrated Resource Plans' filed by utilities in regulated states, rather than the ad-hoc methodology pursued currently," UBS' research note says. "What's next in the 're-regulation' of Generation? Formally acknowledging such by regulators - as has already been understood in California, where the CPUC solicits for generation using a long-by Paul Ring, Energy Choice Matters, April 30, 2013 The trend in the retail electric sector is, "towards re-regulation; not further de-regulation," Julien Dumoulin-Smith said in a note to UBS Investment Research clients. Dumoulin-Smith is executive director for UBS' US Electric Utilities & IPPs Group. "We think the trend is towards re-regulation; not further de-regulation," Dumoulin-Smith said in the research note titled "Evaluating the Competitive Landscape." "Retail growth is likely limited to existing markets," Dumoulin-Smith said. "While talk of 'expanding' retail opportunities to market has persisted since initial re-entrenchment in a decade ago, we see little palatability of increasing 'caps' on switching in Michigan, California, alongside a host of other potential markets," the research note said. "Additionally, we believe the short tenor of retail contracting for energy (typically only up to 1-year) will only reiterate the need for underlying capacity constructs to provide revenue visibility and fuel diversity across the grid desired by power generators and regulators alike," Dumoulin-Smith said in the research note. (See related article on the left.) UBS: Retail trend is towards more re-regulation; Not further deregulation Growth of ‘distributed’ electricity generation could transform utility systems by Steven Schultz, May 6, 2013 The U.S. electric utility industry faces a critical juncture as new technology and declining prices allow a more "distributed" system of small-scale generators, renewable energy installations and energy-efficiency strategies, according to a group of high-level energy industry executives and regulators who met at Princeton University recently. "We have a monumental challenge," said Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission, who participated in the all-day meeting Friday, April 26. Citing commentary by an analyst who warned of a potential "train wreck" in the industry, Wellinghoff outlined converging tends in which technological advances are allowing consumers and companies to take matters of reliability, term procurement plan (LTPP). We believe New England and New York could follow suit eventually," Dumoulin-Smith wrote.
Object Description
Okla State Agency | Municipal Power Authority, Oklahoma (OMPA) |
Okla Agency Code | '981' |
Title | OMPA transmission, 06/2013, v.29 no.6 |
Authors | Oklahoma Municipal Power Authority. |
Publication Date | 2013-06 |
Frequency | Monthly |
Publication type |
Newsletter |
Purpose | Shock: UBS sees New England, New York suscepti ble to "re-regulation" of generation; UBS: Retail trend is towards more re-regulation, Not further deregulation by Paul Ring; Growth of 'distributed' electricity generation could transform utility systems by Steven Schultz; |
For all issues click | M2700.6 T772 |
Digital Format | PDF, Adobe Reader required |
ODL electronic copy | Filed with documents.ok.gov submissions system |
Rights and Permissions | This Oklahoma state government publication is provided for educational purposes under U.S. copyright law. Other usage requires permission of copyright holders. |
Language | English |
Date created | 2013-05-17 |
Date modified | 2013-05-17 |
OCLC number | 890223849 |
Description
Title | Page 1 |
Full text | JUNE 2013 - VOL. 29 NO. 6 (Continued on page 2.) by Paul Ring, Energy Choice Matters, April 30, 2013 New England and New York could follow California in essentially re-regulating new build power generation through the use of regulator-directed procurements, Julien Dumoulin-Smith said in a note to UBS Investment Research clients. Dumoulin-Smith is executive director for UBS' US Electric Utilities & IPPs Group. "We believe the notion of competition for IPPs is fundamentally shifting," Dumoulin-Smith said in the research note titled "Evaluating the Competitive Landscape," which cites the potential for New England states and New York to follow California into a long-term procurement process for utility capacity and generation needs. With respect to retail, the note also cites a trend toward re-regulation versus deregulation. "With all of the discussion in recent years around how to effectively incentivize new capacity in merchant markets - and with nearly every market now contemplating a capacity-like mechanism - we see a Shock: UBS sees New England, New York susceptible to “re-regulation” of generation fundamental re-evaluation as to the merits and approach around 'restructuring' of power generation. We believe regions that are truly 'committed' to deregulation warrant premium cash flow multiples; while Texas (ERCOT) stands out at the top of our list, PJM remains near the top as well. Meanwhile, we see cash flows produced by IPPs in states such as California, New York, and New England as more risky given uncertainty around new supply - and possessing less upside, as 'new entrant' economics appear unlikely given states efforts to contract for capacity needs well in advance of price signals," Dumoulin-Smith said. "We believe states like New York could eventually pursue more formulaic approaches to the procurement of new capacity through efforts akin to traditional 'Integrated Resource Plans' filed by utilities in regulated states, rather than the ad-hoc methodology pursued currently," UBS' research note says. "What's next in the 're-regulation' of Generation? Formally acknowledging such by regulators - as has already been understood in California, where the CPUC solicits for generation using a long-by Paul Ring, Energy Choice Matters, April 30, 2013 The trend in the retail electric sector is, "towards re-regulation; not further de-regulation," Julien Dumoulin-Smith said in a note to UBS Investment Research clients. Dumoulin-Smith is executive director for UBS' US Electric Utilities & IPPs Group. "We think the trend is towards re-regulation; not further de-regulation," Dumoulin-Smith said in the research note titled "Evaluating the Competitive Landscape." "Retail growth is likely limited to existing markets," Dumoulin-Smith said. "While talk of 'expanding' retail opportunities to market has persisted since initial re-entrenchment in a decade ago, we see little palatability of increasing 'caps' on switching in Michigan, California, alongside a host of other potential markets," the research note said. "Additionally, we believe the short tenor of retail contracting for energy (typically only up to 1-year) will only reiterate the need for underlying capacity constructs to provide revenue visibility and fuel diversity across the grid desired by power generators and regulators alike," Dumoulin-Smith said in the research note. (See related article on the left.) UBS: Retail trend is towards more re-regulation; Not further deregulation Growth of ‘distributed’ electricity generation could transform utility systems by Steven Schultz, May 6, 2013 The U.S. electric utility industry faces a critical juncture as new technology and declining prices allow a more "distributed" system of small-scale generators, renewable energy installations and energy-efficiency strategies, according to a group of high-level energy industry executives and regulators who met at Princeton University recently. "We have a monumental challenge," said Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission, who participated in the all-day meeting Friday, April 26. Citing commentary by an analyst who warned of a potential "train wreck" in the industry, Wellinghoff outlined converging tends in which technological advances are allowing consumers and companies to take matters of reliability, term procurement plan (LTPP). We believe New England and New York could follow suit eventually," Dumoulin-Smith wrote. |
Date created | 2013-05-17 |
Date modified | 2013-05-17 |