Plenty of wheeling and dealing seen during 2014

A new year is upon us and many people in the electric power industry must get used to reporting to a new parent company.

Here’s a quick look at some of the major industry restructuring that occurred during 2014.

The past year saw a number of consolidations announced or completed. NextEra Energy (NYSE:NEE) and Hawaiian Electric Industries (NYSE:HE) said in December that they have reached agreement to combine.

In November, the Federal Energy Regulatory Commission (FERC) approved the Exelon (NYSE:EXC) acquisition of Pepco Holdings (NYSE: POM).

Also in November, Energy Future Holdings, which has been involved in Chapter 11 proceedings for many months at the U.S. Bankruptcy Court for the District of Delaware, said in a financial filing that it is making progress on selling its regulated Oncor Electric Delivery power distribution business.

Energy Future Holdings had already announced a few months earlier that its assets were officially up for sale.

In October, Louisiana-based Cleco Corp. said that it has entered into a deal to be acquired by a group of North American long-term infrastructure investors led by Macquarie Infrastructure and Real Assets (MIRA) and British Columbia Investment Management Corp. (bcIMC), together with John Hancock Financial and other infrastructure investors.

In June, management at General Electric (NYSE:GE) and Alstom said that they had agreed to a deal where GE will purchase most of Alstom’s energy business.

If consummated, the deal should solidify the combined company as an international leader in both natural gas turbines and steam turbines. The deal should increase GE’s installed base of turbines by 35%, GE said.

PPL (NYSE:PPL) announced a deal in June to spin off its PPL Energy Supply and combine it with Riverstone Holding’s generation assets to form an independent power producer called Talen Energy.

The deal is expected to close in the first or second quarter of 2015. PPL shareholders will own 65% of Talen and Riverstone will own the other 35%.

Also in June, Wisconsin Energy (NYSE:WEC) said it has reached a definitive agreement to acquire Integrys Energy (NYSE:TEG) in a $9.1bn transaction.

In April, FERC approved the takeover of Arizona-based UNS Energy by Fortis Inc.

In early April, the Nuclear Regulatory Commission (NRC) approved the direct transfer of operating licenses for five commercial power reactors and three spent fuel storage installations held by Constellation Energy Nuclear Group (CENG) to Exelon (NYSE:EXC). The facilities are located in Maryland and New York. Exelon will have the option to ultimately buy the nuclear power facilities.

NRG Energy (NYSE:NRG) is also taking over much of the capacity of the bankrupt Edison Mission Energy (EME). The deal was first announced in the fall of 2013.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at