[BETA] Fortnightly

(August 2011) Shaw Group completes 500 MW combined cycle plant; Pattern Energy begins building Spring Valley wind farm; AEP, Duke and TVA team up on interstate transmission line; AEP and MidAmerican contract for Texas transmission projects; Alliant contracts Open Systems International for volt-VAR control system; Alstom buys into AWS Ocean Energy; Siemens acquires shares in PV manufacturer Semprius; Lockheed Martin introduces cyber security system; plus contracts and announcements involving Elster, Itron, Suzlon, Solon, Sensus, Westinghouse Electric, Morgan Lewis and others.

(March 2011) TVA and EPRI demonstrate solar-assisted EV charging station; Ford unveils the all-electric Focus; Central Maine Power awards substation contracts; ERCOT deploys ABB software in nodal market; FirstSolar starts up PV plant for Southern Company and Ted Turner; plus contracts and announcements involving Open Systems International, Verizon, Suntech Power, Alcatel-Lucent, Siemens, Cisco, Elster, Sensus, Silver Spring Networks and others.

(February 2011) PPL acquires E.ON U.S. LLC, NRG Energy acquires generating station from Kelson, ArcLight Capital buys into OGE’s Enogex Holdings LLC joint venture and more ...

(January 2011) PPL acquires E.ON U.S. LLC, NRG Energy acquires generating station from Kelson, ArcLight Capital buys into OGE’s Enogex Holdings LLC joint venture and more ...

The past year has allowed the North American power sector to continue its recovery, but it has been a treacherous time for investing. Asset values, and the value of their associated debt instruments, are being driven in the short term by an extreme fuel market and in the long term by a back-to-basics mindset among electric utilities. Still, asset valuations in most markets are not yet at replacement costs, leaving current investors with a residual level of risk.

Recent attrition raises the question: Consolidation or death spiral?

When GridAmerica LLC closes its doors at the end of this year, the number of independent transmission companies (transcos) in the United States will fall by one-fourth. Only three ITCs will remain: American Transmission Co. (ATC), International Transmission Co. (ITC), and Trans-Elect Inc.

Buying Time

Slowly and cautiously, utilities are moving back into growth mode.

The air is buzzing with talk of mergers and acquisitions (M&A). It can be heard in the boardroom and on the trading floor. Bankers hear it, and they see their deal backlog beginning to grow. Fund managers hear it, as they hunt for the best buys in the market before strategic investors snatch them up. Financial advisers and lawyers hear it, too; their phones are ringing more than they have in years.