Princeton University

School of Engineering & Applied Science

Energy sector economics and issues-Transmission, Distribution, and Generation

Speaker: 
Scott S. Jennings, VP, PSEG Services Corporation, Visitor, ACEE
Location: 
Friend, 109
Date/Time: 
Monday, February 3, 2014 - 7:30pm

This lecture will provide an overview of the economics for the rate-regulated Transmission and Distribution (T&D) sector and the competitive merchant generation sector along with the key issues and policy decisions (and re-decisions) that are impacting each sector.   
In the T&D sector we will discuss the basic economic construct for utilities and the most critical issues facing companies and regulators, including returns on equity, customer rate pressures, declining or flat demand, and current issues related to the “Utility of the Future” – such as system hardening and resiliency, distributed generation and net metering, and the impacts of increasing amounts of energy efficiency.    In the generation sector, we will discuss how major energy markets in our region work, the economics of various types of generation, and the impact of dramatic changes in natural gas prices and the increasing amount of renewable generation.  
Along the way, we will contemplate the wisdom of several strategic visionaries including Mike Tyson and Yogi Berra.  
Suggested pre-reading:  
Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Electric Retail Business.  Edison Electric Institute, January 2013. http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf
Coal Plant Retirements: Feedback Effects on Wholesale Energy Prices.  Brattle Group, November 2013.
http://www.brattle.com/system/news/pdfs/000/000/584/original/Coal_Plant_Retirements_-_Feedback_Effects_on_Wholesale_Electricity_Prices.pdf?1386628173
2013 Strategic Directions in the North American Electric Industry.  Black and Veatch, May 2013. http://bv.com/reports/2013-electric-utility-report