Puhca

In response to last year’s repeal of the Public Utilities Holding Company Act (PUHCA), the California Public Utilities Commission (CPUC) unanimously approved new rules governing private sector utilities and their holding companies. Action by the CPUC had been delayed or postponed for several months, but none of the affected companies objected to the action.

The much-anticipated combination of FPL Group and Constellation Energy announced last week is likely a harbinger of things to come in a post-PUHCA era, analysts say. However, don’t expect a frenzy of activity, and utility combinations in the absence of non regulated assets will have less appeal than pairings like FPL and Constellation, a deal predicated on non regulated business.