NRG Energy agrees to acquire Solar Power Partners; SolarCity agrees to financing terms for SolarStrong; plus asset sales by Home Warranty of America and ESA Renewables, and debt issues by Peabody Energy, Duke Energy, Baltimore Gas & Electric and others.
Riverstone/Carlyle acquire eight power plants; Entergy pays $346 million to NextEra for Rhode Island plant; plus asset sales by First Energy and Thermo Cogen, and debt issues by MarkWest, Atlantic Power, Mississippi Power, and SCE totaling $1.6 billion.
(November 2011)
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.
Exelon to buy Constellation Energy, Williams Partners buys interest in Gulfstream interstate gas pipeline system, Macquarie Energy enters purchase agreement for Oak Solar project, and others.
Northeast Utilities buys NStar in $4.3 billion stock deal; Toyota Tsusho buys into Oyster Creek Cogeneration; ITOCHU buys into wind farm; Atlantic Power buys wood-fired plant from ArcLight; plus equity and bond deals totaling nearly $3 billion.
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.
January’s debt-issue activity portends a rush on the markets later this year.
Something seemed rotten in December. Fortnightly’s survey of utility and financial deals for that month turned up so few debt issues, we wondered if our research methods were failing. We found only one significant utility bond issue during the month; Allegheny’s West Penn Power issued $275 million in 10-year notes. December’s deathly quiet raised questions about whether we were missing most of the deals.