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Albany-based Energy East Corp., parent of New York StateElectric and Gas, is spending $1.4 billion to acquire RGS EnergyGroup, creating a Empire State powerhouse that would serve almostthree million customers, including half of those in upstate NewYork. The boards of both companies approved the deal last weekend.Energy East also will assume about $1 billion of RGS Energy debt.

FERC yesterday gave Sierra Pacific Resources (SPR), parent ofSierra Pacific Power and Nevada Power, the go-ahead to acquirePortland General Electric (PGE) from Enron Corp. The marriage,which is expected to close during the first quarter of 2001, stillmust be approved by the Securities and Exchange Commission (SEC).It also gave the green light to a proposed partnership venturebetween New Orleans-based Entergy Corp. and privately held KochIndustries Inc. to be called Entergy-Koch L.P.

WGL Holdings is the new the parent company of Washington GasLight Co., a regulated natural gas utility that serves over 875,000customers in Washington D.C., and other subsidiaries formerly underWashington Gas before this restructuring. “The creation of this newstructure strengthens our competitive position in the new energyera,” said James H. DeGraffenreidt, Jr., CEO of WGL Holdings. “Itprovides greater financial and regulatory flexibility and enhancesour ability to continue improving our utility operations andgrowing profitable energy-related retail businesses.”

CMP Group , the parent company of Central Maine Power Co., saidthat Energy East Corp. completed its $1.2 billion buyout of theMaine utility company. The U.S. Securities and Exchange Commission,the last governmental agency whose approval was required, signedoff on the deal last Thursday. Under the agreement, Energy Eastpurchased all CMP’s common stock for $29.50 a share and assumed$271 million in preferred stock and long-term debt. The merger wasannounced in June 1999. Energy East has about two milliondistribution customers, including 1.4 million electric customersand 600,000 natural gas customers.

As expected, shareholders of Chicago’s Unicom Corp., the parentcompany of Commonwealth Edison, voted yesterday to approve themerger of their company with PECO Energy, based in Philadelphia.Nearly 95% of the shareholders cast votes in favor of the merger.The vote followed one by PECO shareholders Tuesday, who approvedthe merger with nearly 97% in favor. When finalized, themega-merger will form a new holding company, Exelon Corp.

NSTAR, the parent company of Boston Edison, CommonwealthElectric, Cambridge Electric and Commonwealth Gas, has requestedthat the Federal Energy Regulatory Commission impose a price cap of$1,000/MWh on the New England wholesale power market to protectelectricity consumers from potential surges in prices during peakperiods this summer (see Docket No. EL00-83).

NSTAR, the parent company of Boston Edison, CommonwealthElectric, Cambridge Electric and Commonwealth Gas, has requestedthat the Federal Energy Regulatory Commission impose a price cap of$1,000/MWh on the New England power market to protect electricityconsumers from potential surges in electricity prices.

FPL Group, parent of Florida Power and Light, is buying 66gas-fired turbines (model 7FA) and a generation services agreementfrom General Electric for $3.7 billion. The turbines will supportthe expansion underway at Florida Power as well as the continuedrapid growth of the corporation’s independent power productionsubsidiary, FPL Energy LLC. Under the agreement, GE will deliverthe turbines starting this year through 2004 and will providesupport services through 2011.

Northeast Utilities and Yankee Gas parent Yankee Energy System,Inc. have completed their merger nine months after the deal wasannounced. The Securities and Exchange Commission, which hadordered the break up of the two companies a decade earlier approvedthe recombination Jan. 31 based on a much more lax application ofthe Public Utility Holding Company Act. After approving the deallast fall, YES shareholders decided whether to receive $45/share incash or in NU stock. NU will issue over 11 million shares to YESshareholders. In addition, YES shareholders who receive NU shares,as opposed to cash, will be eligible to receive NU’s dividend of 10cents per share, payable on March 31 to NU shareholders of recordas of March 6. In the transaction, NU will pay $478 million for allof YES common equity and will assume about $200 million in debt.The Connecticut Department of Public Utility Control issued itsfinal approval Dec. 29. The companies have identified potentialsavings of at least $10 million over the next five years. NortheastUtilities is New England’s biggest electric utility and Yankee Gasis Connecticut’s biggest gas distribution company.