As Congress mulls omnibus climate-change legislation, questions are arising about the potential for greenhouse gas emissions markets to be manipulated. Current legislation attempts to address the...
Digest (June 2014)
transaction, permits the board of Alstom to consider unsolicited alternative proposals for the acquisition of Alstom, or of the power and grid businesses. The deal is expected to close in 2015.
Southern Company subsidiary Southern Power , in partnership with Turner Renewable Energy , officially acquired the partnership's second California solar installation. The agreement to acquire the Adobe Solar Facility, a 20- MW solar PV installation in Kern County, Calif., was closed upon successful completion of construction. The facility represents the partnership's sixth solar project and is expected to begin commercial operation in May. The Adobe Solar Facility was built and will be operated and maintained by SunEdison. Construction began in the fall of 2013, and an agreement to acquire the facility was announced in November 2013. Electricity generated by the plant will serve a 20-year PPA with Southern California Edison , a subsidiary of Edison International .
Calpine agreed to sell six power plants in its Southeast region to LS Power for $1.57 billion in cash, subject to working capital and other adjustments. Plants sold include: Oneta Energy Center (1,134 MW), Coweta, OK; Carville Energy Center (501 MW), St. Gabriel, LA; Decatur Energy Center (795 MW), Decatur, AL; Hog Bayou Energy Center (237 MW), Mobile, AL; Santa Rosa Energy Center (225 MW), Pace, Florida; Columbia Energy Center (606 MW), Calhoun County, SC. The transaction is expected to close in the second quarter of 2014, pending receipt of necessary regulatory approvals and third-party consents.
El Paso Pipeline Partners acquired from Kinder Morgan Inc. , KMI's 50 percent interest in Ruby Pipeline, its 50 percent interest in Gulf LNG, and its 47.5 percent interest in Young Gas Storage. The transaction value is approximately $2 billion, including $1.012 billion of proportionate debt at Ruby and Gulf LNG, resulting in an equity purchase price of $972 million. EPB plans to fund 10 percent of the transaction value, net of the proportionate debt, with EPB common units that will be issued to KMI at closing valued at approximately $97.2 million.
Accenture and Siemens completed the formation of a joint venture company called OMNETRIC Group. OMNETRIC Group will bring together Siemens' smart grid products and solutions, to combine with Accenture's management and technology consulting, systems integration and managed-services capabilities. The venture will allow for integration of integrate operational technologies - such as distribution management and real-time grid operations - with IT systems, such as meter data management to support smart metering, demand response to manage energy consumption and virtual power plants to enable load management. This combination is expected to provide utilities with an integrated view of their systems and data, and support advanced analysis and decision making.
Energen signed a definitive stock purchase agreement to sell its natural gas utility business, Alabama Gas Corporation (Alagasco), to The Laclede Group . The value of the transaction is $1.6 billion, subject to customary closing adjustments, and is comprised of $1.28 billion in cash and approximately $320 million of debt. Energen's after-tax proceeds are estimated to be $1.1 billion, after consideration of accelerated intangible drilling costs. This