Pennsylvania Enterprises Inc and subsidiaries and Southern UnionCo. said the Pennsylvania Public Utility Commission (PPUC) approvedthe merger of the two companies.
Articles from Enterprises
Massachusetts’ Eastern Enterprises clearly has embraced theconcept of consolidation and is doing deals to prove it. Fresh fromits acquisition of Essex County Gas, the Boston Gas parent lastweek said it will buy nearby Colonial Gas Co. for nearly half abillion in stock, cash, and assumed debt. The deal grants a 27%premium to Colonial’s closing price preceding the deal’sannouncement.
After meeting significant conditions to mitigate market power,Enova Corp. and Pacific Enterprises, holding companies of San DiegoGas & Electric and Southern California Gas, respectively,received final FERC approval yesterday of their $6.6 billionmerger. FERC approved the merger application with only minorcode-of-conduct modifications.
California regulators have approved the $6.6 billion merger ofPacific Enterprises and Enova Corp., allowing the formation of acompany that will serve 21 million gas and electric consumers inSouthern California. But the merger partners did not get all theyrequested. The CPUC ruled merger savings of $174.9 million must bereturned to ratepayers and savings of $161.5 million returned toshareholders over the five years following completion of the mergerrather than over 10 years
Independent Power Producer Cogentrix Energy has signed anagreement with Bechtel Enterprises Inc. to acquire Bechtel’sownership interests in 12 electric generating facilities, plus afractional share of Iroquois Pipeline. Most of the properties wereon the market as the result of PG&E Corp.’s acquisition lastfall of Bechtel’s interest in U.S. Generating Co. Regulatoryconstraints barred PG&E from acquiring certain of the USGenassets.
A California Public Utility Commission administrative law judgehas recommended approval of the proposed Pacific Enterprises-EnovaCorp. merger, citing potential savings of $288 million spread overfive years and divided equally between ratepayers and shareholders.
An important juncture in the proposed $5 billion merger ofPacific Enterprises and Enova Corp. is expected this week when anadministrative law judge with the California Public UtilitiesCommission recommends a proposed decision to the five-memberregulatory body. The CPUC is then expected to act by the end ofMarch. No one is expecting the proposed decision or the ultimatefinal one by the state to turn down the marriage of the holdingcompanies for Southern California Gas Co. and San Diego Gas andElectric Co., but it is unclear whether the conditions placed onthe deal will make it financially unattractive for one or both ofthe companies