ConEd-O&R Merger Gets Nod from FERC
FERC last week gave the green light to the merger between New
York-based Consolidated Edison Inc. and neighboring Orange and
Rockland Utilities (O&R), moving them a step closer to becoming
one of the most formidable electric and gas utility competitors in
the east. The deal, which has been valued at $790 million, is
expected to be completed by mid-year - assuming the regulatory
approvals of other federal and state agencies are forthcoming.
Based on each company's power-generation divestiture plans and
certain mitigation commitments, "we believe the proposed merger
will not have an adverse effect on competition," the FERC order
said [EC98-62]. The combined company will serve nearly 3.3 million
electric customers and 1.2 million gas customers in southern New
York, northern New Jersey and northeastern Pennsylvania.
Consolidated Edison Co. of New York (ConEd), a wholly-owned
utility subsidiary of Consolidated Edison, told FERC it expects to
auction off most of its generation capacity in three separate
bundles by the end of the first quarter. The bundles include: 1)
its Arthur Kill generating station and Astoria gas turbines (1,434
MW); 2) its Ravenswood generating station and gas turbines (2,168
MW); and 3) its Astoria generating station, and Gowanus and Narrows
turbines (1,858 MW). It also proposes to later auction off a fourth
bundle (463 MW) of generating capacity in New York City.
O&R, an exempt public utility holding company that serves
electric and gas customers in New York, also is in the process of
divesting its generation capacity. It expects to have its
generation capacity auctioned off in four bundles by the end of
May. The bundles include: 1) its Bowline Point station; 2) its
Lovett station; 3) hydroelectric facilities; and 4) gas turbines.
Both ConEd's and O&R's generation divestiture plans have been
approved by the New York Public Service Commission.
Following the merger, the surviving corporation will be
Consolidated Edison Inc. O&R will become a wholly-owned utility
subsidiary of Edison, apart from ConEd. O&R's Rockland Electric
Co. in New Jersey and Pike County Light and Power in Pennsylvania
will continue as its subsidiaries.
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