A big week for energy company mergers, buys, bankruptcies

Sponsored by

Both stateside and internationally, big things are happening in the energy industry this week.

In just a few business days, the energy sector has seen a "practically perfect" deal between Alstom and GE, the Texas-based Energy Future Holdings filing for bankruptcy and purchase of Pepco Holdings by Exelon Corp.

This streak of merger news kicked off with the value of Alstom shares soaring. The cause? Rumors of a General Electric buy. Alstom shares climbed more than 12 percent before trading was suspended.

 

French President Francois Hollande was later confirmed to be a fan of the deal, and worked long hours negotiating with the CEOs of Alstom, GE and Siemens (another interested party) to protect France's interests in the deal.

Finally, on April 30, news broke that Alstom was ready to accept GE's bid to buy — a $17 billion deal.

Alstom's board seemingly endorsed the offer from U.S.-based GE, but left the door open to third-party offers from Siemens or other entities.

The scope of the transaction includes the thermal power, renewable power and power grid sectors, as well as corporate and shared services.

April 29, Energy Future Holdings, the parent company of Luminant, TXU Energy and Oncor, filed for Chapter 11 bankruptcy reorganization.

The bankruptcy is not likely to impact consumers in the short-term because distribution and production will continue.

According to Moody's, Oncor will be mostly protected from the bankruptcy "given its strong suite of ring-fence type protections."

Still, Oncor will feel some fallout from the bankruptcy of its parent and affiliate, primarily related to its exposure to TCEH's retail energy provider business, TXU Energy.

Meanwhile Luminant, the power generation business of EFH, is pursuing permits for several gas-fired power projects to meet possible capacity needs in the ERCOT region.

Early April 30, news broke of another big purchase. Pepco Holdings, one of the Mid-Atlantic's most powerful utilities, would be bought by Exelon Corp., which operates in Illinois, Maryland and Philadelphia.

The deal will combine Exelon Corp.'s electric and gas utilities BGE, ComEd and PECO with Pepco's Atlantic City Electric, Delmarva Power and its namesake utility.

The combined utility businesses will serve about 10 million customers and have a rate base of about $26 billion.

Sponsored by

Most Popular Articles


CURRENT MAGAZINE ISSUE

April 2014
Volume 18, Issue 4
file

Utility Products Topics

Transmission & Distribution
                       Vehicles & Accessories
Tools & Supplies   Safety
Line Construction & Maintenance   Test & Measurement

WEBCASTS

There is no current content available.

UTILITY PRODUCTS BUYERS' GUIDE

POWER INDUSTRY JOBS

Industry Company Pages

Keep up-to-date with the latest news and articles from some of the prominent utility product companies and resources.

BUYER'S GUIDE PRODUCTS

Meter Socket Converter

AE Product’s Meter Socket Converter (CNV) converts various Meter Forms to fit the desired application. 14S, 15S or 16S Socket to accept 2S Meter. Optional features available.

Service Disconnect Adapter with Electronic Meter Energizing

AEP’s Service Disconnect Adapter disconnects customer load but maintains power to the electronic meter. The meter maintains reading and communications links for AMR/AMI operations while only disabling the load side.

Meter Socket Jumpers - Perfect for Submetering Applications

AEP’s Meter Socket Jumper offers a safe and easy means of bypassing a meter socket. The Socket Jumper can be used with either Ringless or Ring style Meters.