Shaping the future of electric utilities
- Duff Phelps/MCM Investment Research Co., Chicago, IL (United States)
On December 14, 1992, Cincinnati Gas Electric Company (CG E) and PSI Resources, Inc. announced an agreement to merge the two companies into a newly formed company, CINergy Corp. In announcing the proposed merger, James E. Rogers Jr., chairman, president, and chief executive officer of PSI said, Our companies have chosen to shape our future and our industry. This is an ideal partnership, since our strengths complement each other and our vision of the future is the same. Will this merger be the first of many that will shape the future of the electric utility in the United States What is the vision of the future for the industry About five years ago, a well-known Wall Street utility analyst traveled around the country talking about the anticipated consolidation of electric utility companies in the US His motto was Fifty in Five, meaning widespread consolidation that would reduce the number of independent investor-owned utilities from more than 100 to 50 within a five-year period. He even developed a map showing the mergers/consolidations he looked for and actually named names. More than five years have passed, and only a handful of utility mergers have taken place. But, looking forward from 1992, restructuring of the utility industry is very much a vision of the future. What is the driving force The National Energy Policy Act of 1992 provides the legislative framework for the electric utility industry in the US in future years. While the specific rules that will govern the industry are yet to be promulgated, the intent to allow (even promote) competition is evident in the Act itself. But it appears the vision of the future is market driven.
- OSTI ID:
- 6539766
- Journal Information:
- Nuclear News (La Grange Park, Illinois); (United States), Journal Name: Nuclear News (La Grange Park, Illinois); (United States) Vol. 36:2; ISSN NUNWA8; ISSN 0029-5574
- Country of Publication:
- United States
- Language:
- English
Similar Records
Electric utility mergers more likely as competition spreads
Range war: IPALCO's bid for PSI resources
Related Subjects
210800* -- Nuclear Power Plants-- Economics
CAPITALIZED COST
COST
COST BENEFIT ANALYSIS
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC POWER INDUSTRY
ELECTRIC UTILITIES
FORECASTING
INDUSTRY
LIFE-CYCLE COST
NUCLEAR FACILITIES
NUCLEAR POWER PLANTS
POWER PLANTS
PUBLIC UTILITIES
THERMAL POWER PLANTS