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.
(February 2011) Silver Spring integrates Itron meters; PECO picks Sensus; AT&T and Elster sign agreement; PSEG Fossil selects ABB for a multi-phase controls project; Trilliant secures equity financing and wins Burbank ARRA contract; Navigant buys BTM Consult; GE acquires SmartSignal; plus contracts and announcements from Survalent, Mitsubishi Motors, AES Energy Storage 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.
T&D investments prioritize reliability and load growth.
A massive T&D system build-out is starting, but more needs to be done. Executives from Northeast Utilities, Pepco Holdings and ITC Holdings discuss improvements needed for reliability, capacity, security, smart-grid and demand-response measures, as well as accommodating wind and green-energy quotas.
Electric shortages and the generation overbuild continue to co-exist.
While maintaining its stance as the most sophisticated competitive electricity market in the country, PJM still faces several challenges, all of which are augmented by its expanded footprint. Most prominent is the RTO’s plan to implement a new reliability pricing model. Further, parts of PJM are ailing from transmission congestion issues that limit access to abundant, cheap power sources in the region.
Retail Choice: New York utilities cry “bait and switch,” but it’s not that simple.
Mergers & Acquisitions
Joint Ventures. The Federal Trade Commission, in consultation with the Antitrust Division of the U.S. Department of Justice, issued draft antitrust guidelines for "collaborations among competitors" that will apply to a wide range of joint ventures and strategic alliances other than actual mergers.
Such collaborations would include R&D efforts, information sharing and joint efforts in marketing, distribution, sales or purchasing, plus various types of trade association activities. File No. 971201, Oct. 1, 1999 (F.T.C.), published at 64 Fed. Reg.
Subsidiaries grapple with codes of conduct. Did regulators overreact?
PG&E Corp. has threatened to appeal - all the way to the U.S. Supreme Court if need be - a $1.68 million California Public Utilities Commission fine, slapped on it for violating affiliate rules.
The fine marked the loudest shot to date in what appears to be part two in the electric and gas restructuring wars:
The Affiliate Rules Wars.
These skirmishes promise to pit independent power marketers and out-of-state utility affiliates against the affiliates of incumbents.