The rationale for microgrids.
Edward N. Krapels and Clarke Bruno
Despite an array of challenges, microgrids are becoming a force in the market. Innovative projects bring greater efficiency and resilience.
(January 2013) Entergy acquires Kgen gas-fired plants in Arkansas and Mississippi; TransCanada buys BP share of Alberta gas storage facility; PSE acquires Tenaska plant; AEP issues $850 million in debt; Duke units float $650 million in bonds; plus debt issues by NextEra, Southern Company, Entergy, and others totaling nearly $3.2 billion.
(October 2012) Entergy Mississippi to spin off its transmission business to ITC; Calpine acquires Bosque Power merchant plant in Texas; WPS acquires Fox Energy plant; E.On buys interest in Magic Valley wind farm; plus bond issues by Nstar, Western Mass. Electric, Texas Eastern Transmission, Alabama Power, and NSP totaling $1.55 billion.
The jurisdictional battle rages on, with FERC and EPA squaring off against the states.
Bruce W. Radford and Michael T. Burr
When Revolutionary War veteran Daniel Shays led an attack on the federal Springfield Armory in January 1787—the spark that ignited the federalist movement—he scarcely could’ve guessed that now, 225 years later, his spiritual descendants would still be fighting that very same battle.
Utilities are enjoying some of the best financing terms anybody’s ever seen. Is the party winding down?
Conditions are ideal for utility financing—but not forever. Although interest rates remain low, policy changes weigh on capital structures.
(October 2012) Exelon sells plants in Maryland and Cali; Mitsui buys into Viridity; Duke issues $1.2B; plus deals at TVA, Xcel, PG&E, etc. totaling $4.9B.
What happens when the Bush tax cuts expire?
Michael T. Burr, Editor-in-Chief
Congress again is embroiled in another hyper-partisan food fight that threatens to blow up into a fiscal crisis. And once again dividend-paying companies like utilities are caught in the crossfire.
Utilities stay the course in a volatile market.
A wave of mergers and acquisitions is moving through the industry, as utilities and financial players position for growth and strategic advantage. Will economic and regulatory forces continue supporting these transactions? Our annual finance special report examines trends in capital markets and M&A deals involving utilities, power generators and gas suppliers.
Utility deals resume after 18 months of austerity.
Utilities are taking advantage of a sweet spot in the capital markets, pre-funding and refinancing at record low rates. But cheap money won’t resolve overhanging uncertainties preventing cap-ex projects and M&A deals. Greater certainty in America’s economic and policy outlook will clear a path for strategic change.