DOES IT MATTER THAT NEW YORK'S PROPOSED RELIAbility Council won't be truly independent, even though its distinctly separate independent system operator now plans to require pristine board...
The Business for Co-Op Acquisitions
9,000 customers. Further--and contrary to conventional wisdom--there are no clear correlations between ROE and such factors as O&M costs per customer, G&A costs per customer, or the total number of customers of the candidate co-op ().
Given this fact, IOUs considering co-op acquisitions should not assume that a co-op of a given size or cost structure must represent the most attractive candidate. Screening and prioritization must be conducted carefully to identify acquisition candidates.
Indeed, all the conventional wisdom regarding co-op acquisitions should be considered suspect until proven otherwise. Although some efforts are currently under way, no IOU in recent years has made a serious and well-planned attempt to acquire an electric cooperative. The first one to do so might transform the way IOUs view their neighboring co-ops, and launch a significant trend toward co-op acquisitions.
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