ARE UTILITIES STOCKS STILL MAKING WIDOWS AND orphans happy?
According to PaineWebber's report, Power Book, utility stocks "are likely to continue to lag the market." Of the 66 electric utilities surveyed, only 9 earned a "buy," or "1," recommendation, and six scored "unattractive," or a "4" rating (see table). The rest fell somewhere between, their stocks labeled either "attractive," or "neutral."
While a merger can bolster a company's potential, it isn't a sure bet. Cinergy Corp.
PG&E Corp. promoted G. Brent Stanley to senior vice president of human resources and Greg S. Pruett to vice president of corporate communications.
CalEnergy Co. Inc. announced that J. Douglas Divine will serve as vice president of project development for CalEnergy Americas. Divine will be responsible for managing the business development activities throughout the Americas Region.
James M. Stephens was named president of Providence-Southern LLC. Prior to joining Providence-Southern, Stephens was assistant vice president of Reed Consulting Group. Stephens replaces Caroline K.
USGEN IS THE NATURAL CANDIDATE TO PURCHASE NEES' generation assets. We have a well-established commitment to the region; we have strong power plant operating experience; and we have been a leader in promoting competition and customer choice in gas and electric industries."
(em USGen President and CEO Joseph P. Kearney
In August 1997, U.S. Generating Co., an affiliate of PG&E Corp., successfully bid $1.59 billion in a competitive auction for all of New England Electric System's non-nuclear generating business (18 power plants, plus power purchase contracts and other assets).
Federal Agencies
Nuclear Plant Fines. The Nuclear Regulatory Commis-
sion has proposed fines totaling $2.1 million against Northeast Nuclear Energy Co. for many violations at the company's Millstone nuclear plant in Waterford, Conn. The fine marks the largest civil penalty ever proposed by the NRC. Northeast Utilities said it will pay the fine, which it called "a necessary and important step toward bringing to closure a very disappointing and difficult chapter in the company's history." The utility said it will not pass the cost onto ratepayers.
Electric Futures.
The American Gas Association elected its board of directors for 1997-98. David W. Biegler, president and COO of Texas Utilities Co., was elected chairman. Richard E. Terry, chairman and CEO of Peoples Energy Corp., was elected first vice chairman and Gary L. Neale, chairman, president and CEO of Northern Indiana Public Service Co., was chosen second vice chairman.
Beth Emery was appointed vice president and general counsel to the California Independent System Operator executive management team. Emery was previously a partner in the law firm of Sutherland, Asbil & Brennan.
NEW England Power, a subsidiary of New England Electric System, promoted Lawrence E. Bailey to president. Previously, Bailey served as vice president and director of generation operations.
Former Deputy Secretary of Energy, Charles B. Curtis, joined Hogan and Hartson as the director of its energy group. Susan Tomasky, former General Counsel of the Federal Energy Regulatory Commission, accepted a position with Hogan and Hartson's energy group.
Connecticut's Department of Public Utility Control and Attorney General Richard Blumenthal alleged gross mismanagement of the 582-megawatt Connecticut Yankee nuclear plant in charges filed at the Federal Energy Regulatory Commission. Northeast Utilities owns 49 percent of the facility.
The plant has been shut since December 1996 and is being dismantled. The filing claimed the utility lost control of contamination and created an undocumented nuclear waste dump.
A state-by-state look at retail competition.
Northeast Utilities Co. has reached an agreement in principle with its shareholders who had claimed that certain NU trustees and officers had failed to manage prudently the affairs of the utility, causing problems for its nuclear power program.
The settlement calls for insurers of those trustees and officers named in the suit to pay NU $25 million, less attorney's fees. NU has agreed to certain corporate governance changes. The agreement was reached after more than eight months of mediation by retired U.S. District Judge Robert C.
New England Electric System has selected 12 companies from the U.S. and Europe to take part in an auction to supply electricity to Massachusetts and Rhode Island "standard offer" customers when retail competition begins.
Standard-offer service is set at seven years in Massachusetts and 12 years in Rhode Island. When competition begins, slated for Jan. 1, 1998 in both states, consumers can choose a new energy supplier through the standard offer.