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What’s Next in Shared Services

 July 21, 2014

Our View of the Top Trends and Why They Matter

Most would agree that the shared services industry has reached a substantial level of maturity. In fact, SSON shared at their recent Shared Services and Outsourcing Week conference that 90% of Fortune 500 companies have a shared services model. While SSOs are maturing, continuous improvement and expansion are always top of mind for leading organizations. Paying attention to key industry trends can help SSOs prioritize their initiatives and continue to create value for enterprise organizations.


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North Dakota Regulators to Enforce Gas-Flaring Rules

 July 11, 2014

The North Dakota Industrial Commission announced that it will begin to enforce regulations that reduce flaring of natural gas produced as a byproduct at oil wells. The state is currently burning significant quantities of natural gas because of inadequate pipeline and processing infrastructure.


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ScottMadden Partners with ACORE to Explore Utility Business Models

 June 30, 2014

The American Council on Renewable Energy (ACORE) released a new report titled, “Evolving Business Models for Renewable Energy: 2014 Industry Review.” The member-authored publication explores key issues and provides recommendations related to evolving utility business models through the integration of renewable energy. A contribution from ScottMadden provides an overview of current utilities’ responses to distributed generation and a course of action for the future.


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Setback for Demand Response in Organized Markets

 June 23, 2014

On May 23, 2014, demand response (DR) resources received a significant setback when the U.S. Court of Appeals for the D.C. Circuit Court issued a decision vacating and remanding the Federal Energy Regulatory Commission’s (FERC) Order No. 745. The order, which was issued in 2012, expanded the role of DR in energy markets controlled by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). The premise of the order was to establish a framework to compensate DR when called upon to replace more expensive generation.


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Massachusetts Stakeholders Agree to Net-Metering Reform

 June 20, 2014

Earlier this week, stakeholders in Massachusetts endorsed a compromise agreement to reform the state net-metering policy. Net-metering policies provide credits at full retail rate for excess generation provided to the grid. The agreement will remove a cap on the number of net-metered customers currently limiting the solar market in return for a minimum charge for all electric customers which will help utilities collect for fixed delivery costs.


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Climate Risks and Utilities: A Story of Confusion

 June 17, 2014

In the fall of 2013, the Intergovernmental Panel on Climate Change (IPCC) released its fifth assessment report confirming the reality of climate change and the critical role of human activity in causing it. Importantly, curtailment of the climate change process through drastic CO2 reductions has been downplayed, and governments and businesses worldwide are now focusing on adaptation.


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EPA Proposes Rule to Reduce CO2 Intensity from Existing Fossil Fuel Plants

 June 16, 2014

On June 2, 2014, the U.S. Environmental Protection Agency (EPA) proposed a new rule under section 111(d) of the Clean Air Act that would lower CO2 intensity from fossil-fuel generators by 2030. Instead of a single requirement, the “Clean Power Plan” outlines state-specific carbon intensity requirements (lbs CO2/MWh). If all states meet the requirements, the EPA estimates CO2 emissions from the power sector will decline 30% from 2005 levels.


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Global Payroll? A Few Planning Considerations…

 June 16, 2014

Human Resources Globalization

Today’s businesses operate in an increasingly global environment. As a result, globalizing operations has become a key focus area for progressive HR organizations in order to be responsive to the company’s needs. The focus has evolved from ensuring basic services are in place or being hands off to country operators to developing an enterprise-wide model that better positions the company for global success. For HR, this means improving services, reducing costs, increasing compliance adherence, and being a better advisor to the business on needs like talent management.


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Utility Warehouse Consolidation…A Waste of Time or Cost-Savings and Performance Driver?

 June 16, 2014

In a recent article, “Electric Utility Inventory Analysis and Optimization,” we addressed ways in which electric utilities can determine how much inventory they need to support a company’s generation, transmission, and distribution assets. Looking beyond optimization, utilities should also consider how their warehouse network strategy is impacting supply chain performance and costs. Implementing an improved warehousing strategy has enabled some supply chain organizations to realize savings that equate to 10% to 15% of their total inventory value.


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ACEEE Report Finds Carbon Strategies Could include Significant Energy Efficiency

 June 9, 2014

The American Council for an Energy-Efficient Economy (ACEEE) recently examined the impact of states adopting four common energy efficiency policies. The four strategies have the potential to reduce greenhouse gas emissions from the power sector by 26% and electricity demand by 25% relative to 2012. In addition, the strategies could also increase national gross domestic product by $17.2 billion in 2030.


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Hitting the Blend Wall – Proposed Reductions in the EPA 2014 Renewable Fuel Standard

 May 27, 2014

The Environmental Protection Agency (EPA) has recently mandated a new Renewable Fuel Standard (RFS2) that reduces the amount of renewable fuels required to be blended into the petroleum fuel supply by approximately three billion gallons. Since cellulosic and advanced biofuels rely heavily on RFS mandates as a key external-funding driver, this change appeared to be a significant setback for the renewable fuels industry. However, taken in context with the larger economic factors, potential technological advances, and potential policy gains, the newly mandated standards do not appear as extreme, and renewable fuels continue to be one of the best paths forward to increased energy and environmental security.


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Rate Freezes: Historical Context and their Prevalence Today

 May 22, 2014

Rate freezes, arrangements where utilities are prohibited from filing rate cases, have been commonly used nationwide since the 1990s. Today, rate freezes or rate case moratoriums are in place across multiple jurisdictions impacting 70 utility companies. While these arrangements have overwhelmingly originated from past rate cases and are intended to benefit consumers; arguably adverse consequences can also be inherent with such arrangements.


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Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.