Jeffrey Jakubiak Live from NYSE: Insights on Energy Regulation, Transmission Challenges, and Private Equity Impact
John Jannarone, Editor-in-Chief of PE Edge, interviews Jeffrey Jakubiak, partner at Vinson & Elkins, at the New York Stock Exchange. They discuss the Federal Energy Regulatory Commission (FERC) and its role in regulating oil, gas, and electric energy. Jeffrey emphasizes the importance of transmission in the electric space, highlighting the need for new infrastructure to accommodate the changing energy landscape, particularly with the growth of wind and solar power.
They touch on the concept of energy deregulation, noting that while there has been a shift from traditional cost-based pricing to market-regulated pricing, the transmission lines remain cost-based regulated. Jeffrey explains the challenges and expenses associated with building and maintaining transmission infrastructure.
The conversation delves into the impact of FERC’s policies on Returns on Equity (ROE) and how uncertainties in ROE establishment can affect utilities’ decisions to invest in transmission projects. Jeffrey also addresses the influence of private equity in the electric utility sector and the significance of predicting and planning for changes in power flows, especially with the increasing use of electric vehicles and solar panels.
In closing, Jeffrey highlights the anticipation of private equity investments in transmission as an exciting change in the energy sector.
Click here to download Vinson & Elkins’ Power Play: Four Key Predictions for FERC’s 2024 Electricity Agenda.
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