News Analysis

 

 

CON EDISON renamed two unregulated subsidiaries: ProMark Energy Inc. (now Con Edison Solutions Inc.) and Gramercy Development Inc. (now Con Edison Development Inc.). Con Edison Solutions will provide electricity, natural gas and oil to commercial and residential customers in the Northeast. Con Edison Development will invest in energy and nonenergy business in the U.S. and overseas.

AES Corp. has begun construction of an 830-megawatt, gas-fired combined-cycle power plant in San Nicolás, Argentina. Nichimen Corp.

Aquila Energy, a subsidiary of UtiliCorp United, has hired David H. Stevenson former marketing v.p. of Duke/Louis Dreyfus, as v.p. power marketing for its mid-continent and western regions.

Charles Falcone, who retired as American Electric Power's system power markets senior v.p., was named project managing director of the New York State Power Pool's Independent System Operator. Falcone served as an official with the U.S. Department of Energy for several years before joining AEP.

Ohio Electric Utility Institute has elected William J. Grealis as board chair and president.

KU Energy and LG&E Energy have announced a merger agreement that could save the companies more than $760 million over 10 years and result in a rate cut of almost 2 percent for each of the next five years.

KU Energy, the parent company of Kentucky Utilities Co., and LG&E Energy, the parent of Louisville Gas & Electric Co., on May 21 announced the agreement to merge into a new holding company called LG&E Energy. The transaction is valued at more than $3 billion, with the combined companies holding assets of more than $4.7 billion.

Annual Annual EPS

Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last

Company Region 06/28/96 09/30/96 Change High Low Rate Yield Value Ratio 12 Mos.Electric Utilities

AEP Company Inc. Midwest 42.63 40.63 -4.69 44.75 35.13 2.40 5.91 22.68 13 3.10

Unicom Corp.

Over the past two and a half years, 10 large mergers have been announced, involving 21 investor-owned electric and gas utilities. Only the MidAmerican Energy merger has been completed, but the estimated market value of the pending mergers is an astounding $40.5 billion. Clearly, this recent wave of merger and acquisition (M&A) activity signals that electric utilities are positioning themselves for future competitive energy markets.

Results from Resource Data International's (RDI's) recent study, U.S.

Annual Annual EPS

Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last

Company Region 12/29/95 03/29/96 Change High Low Rate Yield Value Ratio 12 Mos.

Electric Utilities

AEP Company Inc.

Annual Annual EPS

Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last

Company Region 10/02 12/29 Change High Low Rate Yield Value Ratio 12 Mos.Electric Utilities

AEP Company Inc. Midwest 36.13 40.50 12.11 40.63 31.25 2.40 5.93 22.68 15 2.71

Unicom Corp.

Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last

Company Region 06/30/95 10/02/95 Change High Low Rate Yield Value Ratio 12 Mos.Electric UtilitiesAEP Company Inc. Midwest 35.13 36.13 2.85 36.50 30.50 2.40 6.64 22.68 14 2.63

Unicom Corp.

Peter B. Lilly has been named president and COO of Peabody Holding Co. Peabody is the world's largest private producer and marketer of coal. Lilly will continue to report to Irl F. Englehardt, Peabody Holding's chairman and CEO. Englehardt was recently named v.p. of Hanson Industries' energy group.The board of directors of The Dayton Power & Light Co. has elected Arthur G. Meyer treasurer.

IES Utilities, Inc. has named James E. Hoffman executive v.p. of customer service and energy delivery.