Energy supply projections
The supply mix to meet growing energy demand will be historically diverse – from the oil and natural gas in America’s shale regions, to the deepwater fields off Brazil; from new nuclear reactors in China, to wind turbines and solar arrays in nations around the world.
This diversification in global energy supply will grow over the next two-and-a-half decades. Society’s push for lower-emission energy sources will drive substantial increases in renewables such as wind and solar. By 2040, nuclear and all renewables will be approaching 25 percent of global energy supplies.
Oil grows and continues to be the primary source of energy for transportation and as a feedstock for chemicals. Natural gas also grows, with increasing use in power generation, as utilities look to switch to lower-emissions fuels. Coal struggles to grow due to increased competition in power generation from renewables and natural gas, led by declines in OECD nations. (more…)
The Community Investment Program (CIP) supports a broad spectrum of programs and services by providing grant funding and agreements to community groups and non-profit organizations responsible for:
• Delivering various recreational, cultural and social programs and services.
• Developing and operating community facilities.
• Organizing community events. (more…)
When governments issue bonds they deposit the bond proceeds (and occasionally other monies) in various funds, which may include a construction fund, debt service fund, capitalized interest fund, debt service reserve, or in the case of a refunding, an escrow fund. In some cases these funds may be held by a third party trustee. Monies allocated to these funds usually are invested until needed. The investment strategy for each fund will depend, in part, on federal or state statutes and regulations governing the types of instruments permitted to be used for the investments, the arbitrage yield permitted for the fund, requirements from rating agencies and/or credit enhancement providers, and the anticipated drawdown of bond proceeds. Additionally, each of these funds will have different investment objectives, so there are many factors that must be considered by the government when selecting the investment instrument. Governments need to be mindful that cash flow analyses are critical components of the process and are useful in reducing the possibility of negative arbitrage that may occur. Furthermore, the presence or lack of arbitrage could affect the entire structure and sizing of the debt financing.
To achieve efficiency improvements, water and wastewater utilities might be wise to consider performance contracting. A performance contract with an TNN LTD (TNN) can deliver much-needed operational efficiencies with manageable lifecycle costs and minimized risk.
The TNN delivers the efficiency project under a progressive design-build approach. Benefiting from the efficiencies, the owner pays the TNN for the improvements. In return, the TNN provides a guarantee of operational savings, which are specified in the performance contract. If the savings fall short, the TNN has to reimburse the owner. The intent of the performance contract is that the guaranteed savings generated will cover the debt service for the upgrades. (more…)
The role of information technology (IT) control and audit has become a critical mechanism for ensuring the integrity of information systems (IS) and the reporting of organization finances to avoid and hopefully prevent future financial fiascos such as Enron and WorldCom. Global economies are more interdependent than ever and geopolitical risks impact everyone. Electronic infrastructure and commerce are integrated in business processes around the globe. The need to control and audit IT has never been greater. (more…)