Successful strategies for the new US electricity market

The revolution in the US electricity market is challenging utilities to adapt or become extinct. Effectively responding to the new demands of shareholder value and risk management requires new tactics. One strategy that promises to increase value is to integrate across the entire energy chain, which should provide opportunities for minimizing risks. An indication of the value that companies place on assets which can be incorporated into these broader regional plans can be seen from the bids placed in some of the recent divestitures of utility-owned generation. William Burke & David Haarmeyer Stone & Webster Consultants, Boston