WPS Resources Corp. completed the $315 million acquisition of natural gas distribution operations serving 161,000 customers in Michigan from Aquila Inc. Annual gas throughput from the Michigan operations totals 36 Bcf/year, and the distribution system includes a 3.6 Bcf storage field. The assets operate under a cost-of-service environment and are currently allowed an 11.4% authorized return on equity on a 45% equity component of the regulatory capital structure. “This acquisition is a great strategic fit with our existing operations given the geographic and operational profile of our combined asset base,” said WPS Chairman said Larry Weyers. “We are building the scale and scope of our regulated operations in a jurisdiction where we already operate. Natural gas distribution is a core business for us.” Weyers said that WPS Resources will not reduce field staff, but instead is welcoming the 182 Michigan employees into its existing ranks of 2,945 employees. The assets will be owned and operated by WPS Resources’ wholly owned subsidiary, Michigan Gas Utilities Corp. The Minnesota portion of the acquisition announced in September 2005 is expected to close in the first half of 2006. Combined with the acquired Michigan assets, WPS will serve roughly 469,000 gas customers through its regulated utilities with annual natural gas throughput of 118.6 Bcf. WPS already serves more than 476,000 electric customers through its regulated electric utilities.
Aquila
Articles from Aquila
S&P Believes Severe Liquidity Crunch May be Easing for Energy Players
It’s been a long time coming, but former merchant energy giants like Aquila Inc., CMS Energy Corp., Reliant Resources Inc., Dynegy Inc. and Xcel Energy appear to be stabilizing as they improve their liquidity and pay down debt, according to two reports by Standard & Poor’s Ratings Services (S&P).
S&P Believes Severe Liquidity Crunch May be Easing for Energy Players
It’s been a long time coming, but former merchant energy giants like Aquila Inc., CMS Energy Corp., Reliant Resources Inc., Dynegy Inc. and Xcel Energy appear to be stabilizing as they improve their liquidity and pay down debt, according to two reports by Standard & Poor’s Ratings Services (S&P).
UtiliCorp to Manage Hallmark Cards’ Energy
Aquila Energy’s UtiliCorp Energy Management got a Hallmarkgreeting of its own this week, after inking a three-year agreementwith the Hallmark Cards Inc. to manage the company’s energyprocurement process for natural gas and electricity. No financialdetails were disclosed on the amount of the agreement.
Top Ten Players Forming e-Trading Group
The Energy Consortium – that’s American Electric Power, AquilaEnergy, Duke Energy, El Paso Energy, Reliant Energy and SouthernCompany Energy Marketing – is the latest entry to stake out aposition in the electronic trading sweepstakes.
Utilicorp Buys Stake in Electric Line Company
Adding to its long list of utility, marketing and transportationassets, Aquila Energy parent Utilicorp United entered into astrategic partnership with Quanta Services Wednesday for $400million. Utilicorp hopes to increase its profit potential in thederegulating electric and telecommunications markets by teamingwith the Houston-based Quanta, a provider of specialized servicesfor companies in those industries.
