A Surge of Mergers
Repeal of a 1935 law spurs power companies' consolidation
That could be good or bad for utilities, depending on whether the industry's new investors are as successful as Buffett. Time will tell if the law's new circuitry will have more dollars flowing into, or out of, the nation's power grid.
POWER FUSION
Four major utility mergers are already underway, with more expected after the law changes this week.
$12.8 billion. Improved nuclear energy performance is promised in merger of Exelon and PSEG, both with large nuke plants in Pennsylvania, New Jersey, and Illinois. Will serve 7 million electric, 2 million gas customers.
$11 billion. Power trader Constellation gains more energy to sell with FPL 's large asset base, while FPL gains growth potential thanks to trading revenues. The long-distance Florida-Maryland marriage wouldn't have been possible under the old law.
$9.4 billion. Billionaire Warren Buffett makes a big bet on utilities. His MidAmerican 's takeover of PacifiCorp builds a base of 3 million electric and gas customers in 10 states and 3.6 million more overseas.
$9 billion. Cinergy 's low-cost coal plants provide balance to Duke 's portfolio, now weighed down with high-cost natural gas. Will serve 3.7 million electric and 1.7 million gas customers in five southern and midwestern states and Canada.
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