Electric Utility Mergers and Acquisitions
Mergers and acquisitions involving electric generating facilities generally require approval from FERC and in some cases from state regulators as well. Analysis Group Managing Principal Rodney Frame, assisted by Vice President Donna Lau Brooks and Manager Edo Macan, has provided competitive analyses for several recent proposed and consummated transactions including:
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Ameren’s acquisition of Central Illinois Light Company
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Ameren’s acquisition of Illinois Power Company
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Ameren’s acquisition of the Audrain, Raccoon Creek and Goose Creek generating stations
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Constellation’s acquisition of the Ginna and Nine Mile Point nuclear generating stations
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PSEG Power’s acquisition of the Bridgeport Harbor and New Haven Harbor generating stations in Connecticut
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Public Service Enterprise Group’s proposed merger with Exelon
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Southern Power’s acquisition of the Oleander, DeSoto and Rowan generating stations
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PacifiCorp’s proposed acquisition of the Chehalis generating station
These analyses, presented in the form of expert witness testimony sponsored by Mr. Frame, have applied the “delivered price test” technique used by FERC to examine the horizontal competitive effects of proposed transactions involving “jurisdictional” facilities. Where appropriate, the analyses also have addressed potential vertical competitive concerns. In instances where the analyses identify potential competitive problems, the Analysis Group team has developed specific measures such as transmission system expansion, divestiture of generation facilities, and wholesale power sales designed to alleviate these competitive concerns.
In the process of performing these and other competitive analyses of electricity markets, we have acquired extensive knowledge of competitive and market conditions in geographic markets throughout the country, along with detailed data necessary to perform the required analyses.