Convergence of electric, gas markets prompts cross-industry mergers
- ed.
The upsurge in the number of mergers between electric utilities and natural gas companies over the last couple of years has largely resulted from two occurrences: the convergence of the two industries and the related concern many electric and gas companies have about becoming complete energy providers in order to vie for survival in an increasingly competitive atmosphere. According to a Prudential Securities Equity Research wrap-up report, {open_quotes}Electricity and Natural Gas: Two Deregulated Markets on a Merger Path,{close_quotes} a single market for energy has emerged, where Btus and killowatt hours are being blended together. The convergence of the electricity and gas markets, the study said, is the reason for cross-industry mergers. Barry Abramson and M. Carol Coale, Prudential Securities senior energy and utilities analysts and authors of the report, said, {open_quotes}We believe that in the future, few large players will be content without a presence in both the electricity and gas markets. Hence, natural gas providers should continue to buy electric utilities, and vice versa, as deregulation advances.
- OSTI ID:
- 456720
- Journal Information:
- Electric Light and Power, Vol. 75, Issue 3; Other Information: PBD: Mar 1997
- Country of Publication:
- United States
- Language:
- English
Similar Records
Utilities, marketers identify with tax issures in Supreme Court case
Making strides