October 15, 2000
Life in the Aughts
Experts predict top 10 energy innovations for 2010.
Before we've even agreed on a name for the coming decade, energy experts are predicting life-altering changes by 2010.
Restructuring Plans. The Ohio PUC denied rehearing of its restructuring order for FirstEnergy issued two months earlier, rejecting arguments by all petitioners-utility, marketers, and consumer watchdog groups.
An alternative measure of performance - not based on dividends, earnings growth or P/E ratios.
How to place a value on a utility company? That is the question.
The traditional models no longer work very well. Dividend discount models will not work well if utilities cut dividends and buy back stock to return capital to the shareholders. Earnings growth offers no reliable performance gauge either, as utilities acquire or divest large amounts of capital. Restructuring charges often become necessary to shift resources to their best use.
Mergers & Acquisitions
CP&L + Florida Progress. Carolina Power & Light announced Aug. 23 that it would purchase Florida Progress Corp. for $5.3 billion in a combination that would create the nation's ninth-largest utility in terms of generating capacity, with $6.7 billion in annual revenues and 2.5 million customers in three states. CP&L would pay a premium (between 16.5 percent and 21 percent) over the pre-announcement share price of FP stock.