Financial players and load-serving utilities are looking for power asset deals.

Despite talk of wide bid-ask spreads in the past two tumultuous years, some 60 sales of generation assets have been announced. These sales cover more than 22 GW of capacity, valued on a cash-and-debt basis at approximately $11 billion. A wide variety of buyers and sellers have participated in the sales activity, with a pronounced entry by financial players (investment banks and private equity firms) and load-serving entities (LSEs) looking for capacity to serve their load.

The market speaks but we don't listen.

Will someone please tell me: Where is the proof that the electric utility industry needs more investment in electric transmission? Is it not possible that we already have enough miles of high-voltage line?

I can scarcely turn around but see a new conference or workshop on how to encourage the electric industry to invest more in transmission infrastructure. The Federal Energy Regulatory Commission (FERC) leads that charge, though as a regulator it ought to stay neutral.

How building capabilities for repeated M&A can increase shareholder value.

Despite significant recent upheavals, the energy industry's long-term consolidation is likely to continue. Many companies appear to be moving towards, or have announced, consolidation strategies in their preferred areas of the industry. ()

Frontlines

Camp Flowgate

 

 

Off Peak

June 15, 2001

Forget Black Gold or Texas Tea ...

 

Frontlines

$$$/MWH???

 

 

 

Both look overseas for project developers, but some U.S. firms worry they'll miss out.

News Digest