Mergers and Acquisitions

Issue 6 and Volume 106.

St. Louis-based Ameren has agreed to buy Peoria, Ill.-based electric and gas utility CILCORP. If approved by state and federal regulators, the acquisition from AES of Arlington, Va., will be completed in a year. Adding CILCORP’s Central Illinois Light Co. will boost Ameren’s customer base more than 20 percent to 2.2 million in Illinois and Missouri.

United States Filter Corporation, a subsidiary of Vivendi Environnement, is in the final stages of acquiring the Earth Liquids division of Earth Care Incorporated.

AES Corp. has announced it will not sell off a piece of its IPALCO subsidiary as previously intended.

GE Wind Energy has been formed with the acquisition of several assets of Enron Wind Corp. by GE Power Systems. GE acquired Enron Wind’s integrated wind power capabilities including power plant design, engineering and site selection, and operation and maintenance services. Enron’s wind turbine generators include units with outputs of 750 and 900 kW, with larger systems of 3.2 and 3.6 MW in development. Existing wind farm assets will remain with Enron.

Dallas-based TXU has purchased a 122 MW plant in Pedricktown, N.J. from Javelin Energy as a first step toward expansion into the region. Earlier this year, TXU accepted responsibility for 1,000 MW of power in the New Jersey grid. The company says it is also looking at the upper Midwest, from Illinois through Ohio to Michigan, as a possible area for expansion.

The District of Columbia’s Public Service Commission has approved the merger of Potomac Electric Power Co. (PEPCO) and Conectiv. FERC, along with regulators in Virginia, Maryland and Delaware, had already approved the merger. PEPCO is still waiting for New Jersey regulators to approve the $2.2 billion deal.

Amarillo Gear Company has purchased Chittom International, maker of PowerFlo industrial fans.

Aviation, Power and Marine (AP&M), specialists in new and OEM approved factory overhauled parts for GE and Pratt & Whitney engines, has acquired Power Turbine Consultants (PTC), provider of parts and consulting services for GE aeroderivative gas turbines.

The variable O&M costs in Table 1 of the April article, “Distributed Generation Coming into Focus,” are too high by a factor of ten. The table should read: Total maintenance costs (including fixed costs) in cents/kWhr:
  • Reciprocating engines (diesel) – 0.5 to 1.5
  • Reciprocating engines (natural gas) – 0.7 to 2.0
  • Microturbines – 0.4 to 1.0
  • Combustion gas turbines – 0.3 to 0.8
  • Fuel cells – 0.19 to 1.53