Commodities - Energy, Agriculture & Construction

The following charts are CCCA's dashboard for Energy, Agriculture, and Construction commodities.              

NRG Energy, Inc. Signed a $1.7 Billion Definitive Agreement to Acquire GenOn Energy, Inc.

August 27, 2012 16:09 by David Patterson in M&A  //  Tags: ,   //   Comments (0)
NRG Energy, Inc. ("NRG") signed a definitive agreement to acquire GenOn Energy, Inc. ("GenOn") on July 22, 2012.  According to the transaction, GenOn shareholders will receive 0.1216 of a share of NRG common stock in exchange for each GenOn share of common stock.  This represents... [More]

Discounting of Capital Credits of Deceased Members Upheld in North Carolina

August 24, 2012 16:50 by David Patterson in Cooperatives  //  Tags:   //   Comments (0)
The North Carolina Business Court held that electric cooperates may discount capital credits of deceased members when there is a request for early capital credit retirement. For additional information read the Sutherland Legal Alert, or the full court order is here.

Interest Rates

August 24, 2012 14:24 by David Patterson in   //  Tags:   //   Comments (0)
Interest rates over the last month have been impacted by the ongoing European financial crisis and speculation on the Fed's next moves. There appears to be a growing anticipation of the Fed announcing Quantitative Easing 3 ("QE3") this fall or early winter.  There is still d... [More]

Electric Cooperative Opens Solar Farm

August 21, 2012 10:12 by Bill Conway in Cooperatives, Energy  //  Tags:   //   Comments (0)
Duck River Membership Cooperative opens a solar farm facility, allowing its members to purchase ownership units in return for an energy credit on their monthly bill.  The development of this facility is unique considering it allows the Duck River members to participate in the development of sol... [More]

Dividend Battle May Force Consensus - Utilities benefit from current low rate

August 20, 2012 15:30 by Bill Conway in Accounting & Tax, Regulation  //  Tags:   //   Comments (0)
The outcome of the battle over tax reform and the resolution of the expiring tax cuts could impact how investor owned utilities secure future financing.  The timing of this potential change is not ideal, as utilities are incurring higher cost to develop and build infrastructure, in addition to ... [More]

Utility Market

August 10, 2012 17:18 by David Patterson in M&A  //  Tags: ,   //   Comments (0)
The Dow Jones Utility Average (“DJU”) had its ups and downs during the last 5 weeks, closing at 485.14 on August 10, 2012, up 1.4% over the July 6, 2012 close of 478.43.  At one point the DJU made a run at 500, reaching an intraday high of 498.84.  The 50 and 200 day moving ave... [More]

Renewable Energy Projects + Master Limited Partnerships = a New Twist in Energy Financing

August 7, 2012 09:16 by Bill Conway in Energy  //  Tags:   //   Comments (0)
The recent introduction of a bill to allow MLPs to own renewable energy projects has the potential to reshape the renewable energy marketplace, especially considering the uncertainty of the tax credit programs and the expiration of the 1603 Grant program.  The MLP structure will help in levelin... [More]

Ethanol Mandates Debated as Corn Reaches Record Prices

August 6, 2012 14:23 by Stephanie Siders in Agriculture, Energy, Renewables  //  Tags: ,   //   Comments (0)
The Renewable Fuel Standard mandates that ethanol make up 9 percent of the U.S. gasoline supply in 2012, which would use nearly 40 percent of the nation’s corn production.  In the face of record corn prices due to lower than expected corn production, livestock groups went to the EPA ... [More]

Opportunity for Coop Expansion?

August 6, 2012 10:41 by Bill Conway in Cooperatives, M&A  //  Tags: ,   //   Comments (0)
If the PwC report is correct regarding accelerated consolidation in the utility industry, the electric coop network could follow suit  by acquiring the “more rural” territories from IOUs.  This strategy makes sense for both coops and IOUs, as these rural areas are often best se... [More]

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