How customer satisfaction drives returns on equity for regulated electric utilities.
Data and experience show that serving customers well translates into better rate case outcomes. Conversely, poor performance starts a downward slide. J.D. Power and Associates research shows the correlation between customer service and financial returns.
(September 2011) Hawaiian Electric Industries CEO selected to serve on National Infrastructure Advisory Council; PPL Corp. names new president; FirstEnergy Nuclear Operating Company names new director of strategic industry initiatives; USEC Inc. appoints new vice president and chief audit executive; plus senior staff changes at Southern Company, National Rural Telecommunications Cooperative, Nebraska Public Power District, and others.
(February 2011) American Electric Power names new president; Edison International promotes two to e.v.p.; DPL elevates Craig Jackson to vice president and treasurer; INGAA names new director of communications; plus personnel changes at Constellation, Consumers Energy, Southwest Power Pool, and other organizations.
Do regulatory and economic trends favor industry mergers?
Now that some new major transactions have emerged, and financial recovery appears slowly moving forward, utility mergers are beginning to appear likely again. Although regulatory hurdles still impede new transactions, some changes at the federal level are reducing concerns about market power and competition. Plus, changing market conditions and new compliance requirements are strengthening the case for scale economics.
Will shifting winds bring consolidation?
A spate of newly announced deals, including Allegheny Energy’s proposed $9.27 billion acquisition of FirstEnergy, plus PPL’s takeover of E.ON US for $6.73 billion, has left the utility industry cautiously optimistic for a revival of M&A activity.
(November 2009) El Paso Electric promoted George A. Williams to senior v.p. and COO. Idaho Power promoted Darrel Anderson, IDACORP and Idaho Power’s senior v.p. of administrative services and CFO, to executive v.p. of administrative services and CFO. ConEdison Solutions hired Jim Mueller as v.p. of customer operations. Exelon Corp. appointed John Stough as v.p. and chief development officer for Exelon Transmission Co., a new venture on transmission lines. And others...
(December 2008) Arizona Public Service named Daniel Froetscher vice president of energy delivery. Southwest Gas Corp. hired Don Soderberg as vice president of external affairs.Chesapeake Utilities Corp. named Michael P. McMasters as executive vice president and COO. American Gas Association elected Thomas E. Skains chairman. And others...
(September 2008) Shareholder value remains strong as the Big Build begins. Our fourth annual ranking shows healthy growth in earnings and share prices. But as capital spending grows, dividends are shrinking and equity returns are weakening. Regulatory relationships will separate future winners from losers.
American Electric Power named Michael Rencheck senior vice president and chief nuclear officer for its D.C. Cook Nuclear Plant in Bridgman, Mich. The American Public Power Association elected Roger B. Kelley to its board of directors. OGE Energy Corp. named Danny P. Harris as COO. Glen Justis joined Deloitte & Touche LLP as a director in the global energy markets group of the organization’s regulatory and capital markets practice. And others...
(March 2007) Constellation Energy named Kevin W. Hadlock vice president, investor relations, and Robert L. Gould vice president, corporate communications. Subsidiary Constellation NewEnergy appointed Emily Neill as business development manager. Dynegy Inc. announced several organizational changes related to the company’s proposed combination with LS Power. Robert W. Best, chairman, president, and CEO of Atmos Energy Corp., was elected chairman of the American Gas Foundation’s board of trustees for 2007. And others...