The New Venture Capitalists: Utilities Go Shopping for Deals

Deck: 
How gas supply and price disruptions now outweigh Big earnings potential plus an energy-related focus are prerequisites when AEP and Cinergy sort through investment projects.
Fortnightly Magazine - December 2000
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How gas supply and price disruptions now outweigh Big earnings potential plus an energy-related focus are prerequisites when AEP and Cinergy sort through investment projects.

Power companies fast are becoming in the venture capital (VC) community. A scan of utility press releases reveals that utilities are investing in emerging companies at an alarming rate. Indeed, many electric utility companies aggressively are pursuing ventures with high growth potential in an effort to spur earnings, diversify their investment portfolios, and capitalize on their corporate strengths. As the days of rate base regulation slip away, power companies are gearing up to shift investment focus, at least to some degree, away from the traditional business of generation, transmission, and distribution. Finding new, profit-boosting investments is a full-time endeavor for a new breed of utility manager—the venture capitalist.

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