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Entergy

Yankee Retreat

An argument for reform in Northeast markets.
A confluence of factors contributed to the Vermont Yankee shutdown decision, but a key driver was the very design of the Northeast power markets. Policymakers considering reform should take the long view, and ensure that price signals reflect market demands for energy, capacity, and resource diversity.

Vendor Neutral

(December2012) KC Electric Association expects soon to finalize installing a Sensus FlexNet network and iCon A electric meters to serve about 4,000 residential and small commercial members across a 5,000-square-mile territory in rural Colorado. Itron and C3 Energy formed an alliance to integrate and jointly market an energy management solution to North American utilities. And others...

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KC Electric Association is installing Sensus meters in rural Colorado.
PG&E became the first utility to deploy Picarro Surveyor mobile devices for gas leak detection.
Georgia Power started up the final unit at its new McDonough-Atkinson combined-cycle plant.
Siemens will supply a SGT6-5000F gas turbine for a new power plant in Manaus, Brazil.
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Vendor Neutral

People (November 2012)

Westinghouse Electric names former Progress Energy Executive as president and CEO. FirstEnergy makes numerous executive changes and appointments; Pepco hires new general counsel; plus executive appointments and announcements at AEP, PPL, PG&E, ITC Holdings, Dominion, EPRI, SEIA, and others.

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Danny Roderick
Mark Crosswhite
Greg Kiraly
Steve Rasmussen
J. Wayne Leonard
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People

People (September 2012)

James Rogers grabs CEO position at Duke-Progress; FirstEnergy promotes executives; JEA names Belechak CEO; ConEdison Solutions hires sales execs; Atlantic Power names new CFO; plus executive changes at Copano Energy, DTE, Entergy, and others.
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James Pearson
Bennett Gaines
Mark Jones
Raymond Evans
Kevin Lubawski
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People

The Fortnightly 40 Best Energy Companies

(September 2012) Our annual financial ranking shows some remarkable shifts among the industry’s shareholder value leaders. Despite flat demand and low commodity prices, investor-owned utilities are investing heavily in capital assets. Investment discipline and operational excellence distinguish leaders on the path to financial performance.
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The <i>Fortnightly 40</i> Best Energy Companies
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Behind the Rankings
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Our annual survey of power and gas company performance relies on a modified DuPont model, based on its 89 year-old namesake approach for calculating shareholder value in asset-intensive industries. In 2008 we tweaked the model—which originally was developed in 1919 by a finance executive at E.I. du Pont de Nemours & Co.—to measure growth on a long-term, sustainable basis (See sidebar “F40 Model Characteristics”).

The Fortnightly 40 model combines several common measures of financial performance—profitability, dividend yield, cash flow, return on equity (ROE) and return on assets (ROA)—together with a sustainable growth-rate calculation, to produce an overall picture of a company’s value and long-term prospects. To avoid the pitfalls of short-term fluctuations, the model evaluates four years of results for each company. (This represents a change from 2008 and previous F40 rankings, which considered three years of financial results.)

The universe for the ranking—which this year numbers 82 companies—includes publicly traded, U.S.-based companies with major assets in energy production, transportation and retail delivery, and positive shareholder equity value for the past four years. Pure-play mining and exploration & production companies are excluded, but a few pure-play merchant power generation companies are included in the sample.–MTB

Credits: The Fortnightly 40 model was developed in 2006 by former Fortnightly Executive Editor Richard Stavros and Jean Reaves Rollins, managing partner of the C Three Group in Atlanta.

F40 Model Characteristics

Time Frame: 4-year average

 

Sample: 80 largest U.S.-based investor-owned power and gas companies, with assets in power generation or electricity and gas transmission and distribution.

Components:

1. Profitability= Margin = Income from Continuing Operations/Total Revenues.

2. Dividend Yield= Annual Declared Dividends/Year-End Stock Price.

3. Free Cash Flow= Operating Cash Flow from Continuing Operations – Capital Expenditures.

4. DuPont ROE Five-Ratio Model:

a. Earnings after taxes (EAT) = Income from Continuing Operations after Taxes;

b. Earnings before taxes (EBT) = Income from Continuing Operations + Income Taxes;

c. Earnings before interest and taxes = Income from Continuing Operations before Income Taxes and Interest;

d. Revenues = Total Revenues;

e. Assets = Total Assets; and

f. Equity = Total Common Shareholders Equity.

5. DuPont ROE= (EAT/EBT)×(EBT/EBIT)×(EBIT/Revenues)×(Revenues/Assets)×(Assets/Equity).

6. DuPont ROA= (EAT/Revenue)×(Revenue/Assets)

7. Sustainable Growth= DuPont ROE×(1–Dividend Payout Ratio).

8. Fortnightly Index9. Companies excluded from the FY2011 survey due to M&A activity: Allegheny Energy, DPL, and Nicor.

Author Bio: 

Michael T. Burr is Fortnightly’s editor-in-chief. He acknowledges the editorial contributions of the C Three Group and Accenture.

A challenging year brings a change in the rankings.

Vendor Neutral

(July 2012) NRC renews Entergy Pilgrim nuclear license. San Francisco selects EnerNOC. Entergy contracts with Comverge. FPL adds Quantum Ford F-150 PHEVs to its fleet. Lincoln Renewable Energy dedicates 12.5-MW NJ Oak solar project.

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Bella Energy installed 1.65 MW of PV panels on the roof of the Salt Palace convention center in Salt Lake City.
Lincoln Renewable Energy's 12.5-MW NJ Oak solar project covers  100 acres.
After considering Entergy’s application for more than six years, the NRC approved a 20-year license extension at the Pilgrim nuclear station.
Wisconsin Power & Light paid $392 million to acquire the 600-MW Riverside combined-cycle plant from Calpine.
Quantum Fuel Systems delivered a plug-in hybrid Ford F150 to Florida Power & Light for the utility’s electric vehicle fleet pilot program.
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Vendor Neutral