Cap-ex plans raise the stakes for utility mergers.
Investors historically have been skeptical about merger synergies in utility mergers, assuming that regulators will insist that most or all economic benefits flow to customers. However, recent transactions suggest utilities are taking a different approach to valuing synergies that might strengthen the case for mergers — not just for the merging parties, but also for investors and regulators.
Do regulatory and economic trends favor industry mergers?
Now that some new major transactions have emerged, and financial recovery appears slowly moving forward, utility mergers are beginning to appear likely again. Although regulatory hurdles still impede new transactions, some changes at the federal level are reducing concerns about market power and competition. Plus, changing market conditions and new compliance requirements are strengthening the case for scale economics.
(November 2008) Atmos Energy promoted Kim R. Cocklin to the new position of president and COO. Exelon Corp. named Christopher M. Crane president and COO. Public Service Enterprise Group elected Thomas P. Joyce as president and chief nuclear officer of PSEG Nuclear. Northeast Utilities (NU) announced new leadership for Yankee Gas Services Co. and Western Mass Electric Co. And others...
Wireless systems are improving front-line processes.
Electric utilities throughout the country are rolling out an assortment of mobile workforce solutions, many of which already are found in other industries. Three mobile workforce solutions recently were implemented at National Grid in Long Island, New York, FirstEnergy in Akron, Ohio, and Idaho Power in Boise, Idaho. Each demonstrates the state of the art in a different slice of the operations pie: power generation, distribution system operations, and customer service.
FirstEnergy Corp. named Dennis L. Dabney its vice-president of human resources. Northeast Utilities announced Johnny D. Magwood as its first chief customer officer. AES appointed Ned Hall its executive vice president and president of its wind generation division. Intrepid Technology and Resources named Jack Haffey as its chief executive officer. And others...
(November 2007) Pacific Gas and Electric Co. elected William D. Arndt to the newly established post of vice president, project management and program office. Calpine Corp. promoted Zamir Rauf to treasurer and senior vice president of finance. FirstEnergy Corp. named William D. Byrd director of rate strategy, vice president and chief risk officer. The U.S. Nuclear Regulatory Commission assigned David Dumbacher as senior resident inspector at the Callaway nuclear plant, near Fulton, Mo. And others...
(October 2007) J. William Ichord joined Sempra Energy as vice president of government relations. DPL Inc. appointed Frank F. Gallaher to the boards of directors of DPL and The Dayton Power and Light Co. The board of directors of NiSource Inc. elected Deborah S. Coleman, executive vice president and COO of the National Urban League, to the NiSource board of directors. And others...
(August 2007) Atmos Energy Corp. announced that John Paris has assumed duties as president of the company’s Mid-Tex Division. ISO New England Inc. elected two new board members: Roberta S. Brown, president of Sassafras River Associates LLC, and Richard E. Kessel, president and CEO of Environmental Power Corp.The board of directors of Public Service Enterprise Group named Richard J. Swift as its presiding director. And others...