The market for utility-owned generating assets
- Bodington & Company, San Francisco, CA (United States)
Hold decommission, or sell? For many utilities, that is the question. Utility-owned generating assets are becoming available and they can be attractive acquisitions for independent owners. While the domestic market for power projects has been busy, activity in this market is now escalating due regulated utilities who are offering rate-based projects for redevelopment and sale. Generating assets that have been in utilities` rate bases for as long as 70 years are coming to market, and sales of these projects can yield transactions that benefit both the selling utilities and the purchasing new owners. Big Rivers Electric Corp., Commonwealth Edison, Niagara Mohawk Power, and Pacific Gas and Electric are examples of utilities who have offered selected assets to new, independent owners. A few transactions have closed, new owners can add value that is difficult for a utility to realize, careful and creative deal structures are essential, and potential buyers need to appreciate that some acquirers are uniquely positioned to win competitive solicitations.
- OSTI ID:
- 381230
- Report Number(s):
- CONF-951208--
- Country of Publication:
- United States
- Language:
- English
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