About four months after FPL Group announced its intentions topurchase Entergy Corp. for $13.9 billion, the companies reported thatthey have jointly filed an application with the Federal EnergyRegulatory Commission for approval of the union which would create thelargest utility in the nation (see Daily GPI, Aug. 1).

The companies submitted the request to FERC on Thursday in thehopes of keeping the merger’s completion date during the fourthquarter of 2001.

“This merger will result in a company with the scope and scale,as well as the strategies and world-class skills, to be successfulin a competitive marketplace and better serve our customers,” saidJames L. Broadhead, FPL Group’s CEO. Broadhead will be chairman ofthe merged company.

Upon completion, the new company will serve 6.3 millioncustomers and have a combined generating capacity in excess of48,000 MW. The merged company will be owned by FPL Groupshareholders with a 57% stake, and Entergy shareholders will own a43% holding. The new company has been valued at $27 billion.

The filing submitted to FERC includes information on the effecton rates, the effect on regulation and the effect on competition,three factors FERC evaluates carefully when dealing with utilitymergers.

“We believe our proposed merger satisfies the Commission’sreview criteria and that the Commission should find the merger isin the public interest,” said J. Wayne Leonard, Entergy’s CEO.Leonard will continue to serve as CEO of the merged company.

Previous filings with state regulatory agencies show that theproposed merger is expected to provide annual synergies growingfrom $200 million to $375 million over the first few years. Thecompanies also do not expect the merger to have any adverse impacton its customers’ rates or service.

FPL Group and Entergy have requested that FERC approve themerger no later than June 1, 2001 in order to keep the merger’stimeline intact. Both companies’ boards have approved the unionalready and the companies have scheduled individual shareholdersmeetings for a vote on Dec. 15.

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