American Public Power Association

The Commodity Futures Trading Commission has come under fire for the nuanced lists of exemptions it has offered to various firms and groups as it implements some portions of Dodd Frank legislation that require greater transparency and tighter limits on hedging and trading of the derivatives it oversees.

Included in this group have been certain “natural” players perceived as having an inherent physical position in a relevant commodity and therefore less likely to game the market without regard for fundamental supply and demand or to hold dangerously large positions. Also included as of this week are public power companies and cooperative utilities, which have been exempted from all but the anti-fraud, anti-manipulation and record inspection provisions of the Commodity Exchange Act when it comes to energy transactions. Keep reading →

Municipal bonds are a major source of financing for public power projects, and their tax-exempt status is one of the factors that makes them appealing for investors who might otherwise demand higher returns on their money.

The American Public Power Association has launched an intense campaign to undermine current proposals before Congress that would change the current tax advantages municipal bonds enjoy. As the hunt continues in DC for new revenue that can help plug growing budget deficits that in turn have incurred repeated political crisis, long-held tenets of tax code advantages and exemptions have begun to come under review. Keep reading →

The theory of capacity markets is simple: in a competitive market, electricity prices for future supply will rise as shortages loom, drawing in competitors to profit by building new generating capacity.

In practice, it may not be working out that way, and simmering discontent over how much consumers are paying for future reliability, and what they’re getting for it, may become open, and bipartisan, rebellion in 2012. Keep reading →

Power transmission systems in 25 states plus the District of Columbia saw record-high electricity demand during last week’s heat wave while demand in New England hit its second-highest level ever, regional transmission organizations said.

The record demand surge was reported by PJM Interconnection, serving 13 mid-Atlantic and southern states, and by MISO, which covers 12 Midwestern states plus the Canadian province of Manitoba. Keep reading →