Energy East and RGS Energy Group plan to create a utility with 1.8 million electric customers, 1 million natural gas customers and 200,000 other retail energy customers in New York, New Hampshire, Connecticut, Massachusetts and Maine. Annual revenues would be $5 billion and the company would have $10 billion in assets. Under terms of the merger, Rochester Gas & Electric would sell all of its power generation assets, the largest of which is the 517 MW Ginna nuclear plant.
DPL Inc., parent of Dayton Power & Light Co., has stopped looking for a buyer and decided instead to remain a free-standing company. DPL officials said the volatility of the electric market and renewed emphasis on generation and reliability prompted them to keep DPL independent and focus on expanding its generation capacity.
A $7.5 billion merger between Consolidated Edison and Northeast Utilities, which would have created the nation’s largest electric and gas distribution utility, is off amid accusations by both parties against the other claiming violation of the 1999 merger pact. In a suit against NU to terminate the merger agreement, ConEd claimed violations by NU include uncovered supply obligations that pose a significant risk and prospects in Northeast Utilities’ unregulated businesses. Northeast says it has always has been in full compliance with the terms of the merger agreement, which ConEd breached by advising NU that it would not close the merger on the terms previously agreed to.
Black Hills Energy Capital, Inc., the independent power subsidiary of Black Hills Corporation, has agreed to purchase the 240 MW Fountain Valley gas-fired plant near Colorado Springs, Colo., from, Enron North America. Black Hills has an 11-year contract with Public Service of Colorado to utilize the plant for peaking purposes.
Privately held CES Acquisition Corp. has purchased Montana Power Company’s independent power business for $84.5 million. Montana Power’s independent power unit has interests in 438 MW of production and 500 MW in development.
The inability of Sierra Pacific Resources to sell California generating assets because of a freeze on such sales by the State of California may prevent Sierra Pacific from completing its $3.1 billion acquisition of Portland General Electric from Enron.
FERC has approved the acquisition of IPALCO Enterprises by AES Corporation. IPALCO, whose regulated subsidiary is Indianapolis Power & Light Company, provides retail electric service to 430,000 customers in Indianapolis, Indiana, and other central Indiana communities. AES has more than 48,000 MW of generation assets.