Duquesne Light and Allegheny Energy scuttle merger plan

Article Abstract:

Duquesne Light Co. will not merge with Allegheny Energy Co. as planned in April 1997 because its parent DQE Inc. could not accept the conditions set by the Pennsylvania Public Utility Commission (PUC). According to the board of directors of DQE, PUC's conditions in the merger and its ruling on the two companies' merger seek for "stranded cost" compensation for the loss of their monopolies. Stranded costs represents assets, such as Duquesne's nuclear plant, that are economical under competition. Duquesne also decided to drop the merger due to PUC's ruling that requires the two companies to relinquish control of their transmission lines. Officials of Allegheny, which were informed through a letter, could not be reached for comment.

Comment:

Will not merge with Duquesne Light Co as planned in April 1997

Acquisitions & mergers, Duquesne Light Co., Allegheny Energy Co.

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In a month of losers, Peco a rare winner

Article Abstract:

Peco Energy Co. reported a record 30-year high stock increase of 14% in August 1998. The move follows after the company curtailed its dividend by almost 50%, terminated 1,200 employees and wrote off $3.1 billion in assets. Peco stated that its shares have increased over 60% since dipping below $20 in early 1998 due to unfavorable ruling by regulators in Pennsylvania. However, industry experts warn Peco that its stock will still carry increasing risk in the future as profit margins on energy sales are likely to be reduced by competition.

Comment:

Reports a record 30-year high stock increase of 14% in August 1998

Securities issued, listed, PECO Energy Co.

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Can being 'green' make it the envy of the electric industry? There is consumer interest in Green Mountain Energy's renewable power. Now, it wants to offer its stock for sale

Article Abstract:

Green Mountain Energy is planning a public offering of up to $600 million of its stock. The company owns the largest solar generator in Pennsylvania, and a $33 million 1998 marketing campaign brought it 36,000 customers in Pennsylvania, along with another 21,000 in California. The company is said to be the most recognized energy supplier in the market, and was able to charge $1.5 million in 1998 for power that cost it $1.1 million. However, the company has accumulated losses of $60 million since it was founded in 1997.

United States, Organizational history, California, Campaign Effectiveness, Geographic, Environmental Marketing, Green Mountain Energy Resources L.L.C.

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