By opening the field to far-flung deals, PUHCA’s repeal changes the merger game.
The repeal of the 1935 Public Utility Holding Company Act has attracted a surprising amount of attention in the business and consumer press. But while some analysts predict a wave of utility M&A activity, others are more sanguine about the change.
The bias in RTO markets, and how FERC might fix it.
RTO practice creates less risk and uncertainty over the nominal short-term wholesale price of power, but more risk and uncertainty over the long-term cost of transmission. That spells trouble for the coal-fired plant, sited far off at the mine mouth, needing long-haul transmission over a long-enough term to pay back the capital costs.
Consider the opening of the PJM market, and its effect on prices.
Wholesale competition is working, and the best evidence to date is the savings produced from the opening of the PJM market to competitive power generation from the Midwest. A real-time case study unfolded before our eyes in May and October 2004.
Which is the best energy company?
(September 2005) Top honors in our first annual financial ranking go to those staying with the basics and to those dealing with soaring commodity prices.
Why integration may win out in the long run.
In the electric power industry, the urge to merge has gained a new lease on life. These combinations are witness to the powerful forces of consolidation let loose when deregulation makes consolidation a preferred tactic in an uncertain world. But to what extent will government policy encourage or resist this trend? What exactly is the regulatory environment that nurtures combinations or, for that matter, supports fragmentation? As we shall see, there are many cross-currents.
(August 2005) President Bush nominated Joseph Kelliher to chairman of the Federal Energy Regulatory Commission. Xcel Energy named Richard C. (Dick) Kelly CEO. And others...
Aquila Inc. announced that Norma F. Dunn has been named senior vice president, corporate communications. Prior to joining Aquila, Dunn worked 17 years in a variety of roles of increasing responsibility for El Paso Corp. And others...
Which utilities and states will be most affected by the new rules?
The SEC denies approval of the AEP/CSW merger. What will that mean for industry consolidation?
What's wrong the Public Utility Holding Company Act of 1935 (PUHCA)? The 1935 act clearly did not contemplate a competitive marketplace for electricity. Legislation should be updated to reflect the prevailing energy economic climate.
Environmental Emissions: The cost to power markets of the Clean Air Interstate Rule depends on the ability to trade mercury.
The decision to limit mercury provides cover for utilities reluctant to spend on controlling NOx and SO2, while boosting other companies