“Northeast Utlilities announcement to buy NStar for a whopping $4.3 billion is a further sign of consolidation that is happening in the U.S. utility industry. A main driver for this merger is reduction of overlapping cost structures. Providing energy services is increasingly a commodity business yet the twist is that utilities have monopolistic power. This power, and the ability to set price, is only countered by strong state public utility commissions. Its role is to make sure consumers receive dependable power at a fair price.

“The announced merger of Northeast and NStar could provide consumers with cost savings, but it will depend on the strength and ability of public utility commissions to advocate for rate paying consumers.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

“As in personal relations, trust is more readily lost than regained in business. BP’s moves are vital first first steps.

“Incentives and rewards throughout the company will need to be closely aligned to drive the desired culture change. In particular, maintaining and asserting a consistent and emphatic message and tone at the top will spell the difference between success and failure in transforming and sustaining the desired culture.”

Contact Kenneth Freeman, 671-358-6170, kfreeman@bu.edu

“How have American habits changed in light of these events? Here is what has happened from 1970 to 2007 in regards to our most oil-intensive activity: Percentage of people who commute alone in car, 25% increase; Number of miles driven per car, 23% increase; Percentage of households with three or more cars, 65% increase; Miles driven per household, 50% increase; Average size of household, 17% decrease.

“BP and government regulators must be held accountable for the Deepwater Horizon disaster.  But make no mistake about it: the ultimate driving force behind our predicament is the American appetite for oil and our apparent unwillingness to change our behavior in the face of enormous human and environmental costs.”

Contact Cutler Cleveland, 617-353-3083, cutler@bu.edu

“The fact of the matter is that while the U.S. withdrew itself from Kyoto, the countries that did stay in – including the European nations – really did not live up to the spirit of the promises they had made at Kyoto. That has meant that these countries want to run as far away from those commitments as they can, but the developing countries feel cheated and are unlikely to buy into any future promises if the past promises are not honored.”

Contact Adil Najam, 617-353-4002, anajam@bu.edu

“Although questions of health and environmental policy are not the focus of the report, its conclusions point to the need for measures to better internalize these hidden costs into the market price of energy.”

Contact Ian Wing, 617-353-5989, isw@bu.edu