Fortnightly Magazine - January 15 1997

Study Points Out M&A Difficulties

Utilities that participate in a merger are just a likely to find revenues shrinking as growing, according to a recent study of completed and pending M&A activity among U.S. utility and energy companies.

The study, "Energy Utility Perspectives (em Creating Value Through Mergers and Acquisitions," conducted by Mercer Management Consulting, examines 43 completed and 53 pending U.S. utility deals conducted between 1985 and 1995.

Byline:

Lori A. Burkhart

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INGAA Sees Renewed Interest in LNG

A study procured by the INGAA Foundation (Interstate Natural Gas Association of America) finds a resurgence in use of liquefied natural gas (LNG) as a peak-shaving alternative for local distribution companies (LDCs).

The study, "The Use of Liquefied Natural Gas For Peaking Service," conducted by Stone & Webster Management Consultants, Inc., attributed a rise in the use of LNG plants for peak shaving to a deregulated environment (FERC Order 636, plus use of the "straight fixed-variable" rate design for gas pipeline capacity), which forces LDCs to assess their true capacity needs.