HAS DISAGREEMENT BETWEEN STATE HOUSE AND COMmission stalled electric industry restructuring efforts in New York?
Sheldon Silver, speaker of the New York State Assembly, insists the...
the settlement's unusual nature: "[T]he MRA [should] result in new contracts with IPPs that will afford NiMo greater operating flexibility¼ Nor are we troubled by NiMo using a portion of its common stock to pay the IPPs¼ [they] cannot use their combined interests in the company to improperly influence its operations. Were they to attempt to do so, we would investigate."
Overall, Scotto of Bear Stearns expects deregulation in New York and nationally will positively affect bond and equity investors. He predicted many bond ratings would be upgraded, as new entities on the transmission and generation sides find new ways of addressing debt and creating cash flow, resulting in more consolidations and buyouts.
He boldly predicted that in five to 10 years, 120 investor-owned utility companies will fall to about 20.
Lori A. Burkhart is a contributing legal editor for
Public Utilities Fortnightly.
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