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]

Severe Drought Impacting Crops & Cattle

August 2, 2012 11:33 by Stephanie Siders in Agriculture  //  Tags: ,   //   Comments (0)
The entire mid-section of the US is experiencing one of the driest hottest summers on record which is severely impacting the nation’s agriculture producers.  What was initially expected to be a bumper corn crop has shriveled up and farmers are now turning to crop insurance to save th... [More]

Rayburn Country Electric Cooperative Obtains an A- Credit Rating from S&P

August 1, 2012 16:20 by David Patterson in Financing  //  Tags:   //   Comments (0)
Rayburn Country Electric Cooperative (“RCEC”) receives an A- credit rating with outlook stable from S&P.  S&P “highlighted Rayburn’s solid financial profile, monthly power cost adjustor that fully recoups volatility in wholesale prices, long-term wholesale power ... [More]

Energy Information Administration released its Residential Energy Consumption Survey

August 1, 2012 16:18 by David Patterson in Energy  //  Tags: , ,   //   Comments (0)
June 6 “Total United States energy consumption in homes has remained relatively stable for many years as increased energy efficiency has offset the increase in the number and average size of housing units, according to the newly released data from the Residential Energy Consumption Survey (RE... [More]

NiSource Issues $750 Million of Long-Term Debt

August 1, 2012 16:15 by David Patterson in Financing  //  Tags:   //   Comments (0)
NiSource issued $250 million of 3.85% Notes due February 2023 and $500 million of 5.25% Notes due February 2043.  NiSource is rated BBB- by S&P and Fitch and Baa3 by Moody’s.  Read more…

Private Equity Deal Flow

August 1, 2012 16:06 by David Patterson in M&A  //  Tags:   //   Comments (0)
David Patterson | May 24, 2012 Private equity merger and acquisition (“M&A”) activity slowed down in the first quarter 2012.  There were 321 deals completed in the first quarter 2012 compared to 426 in the fourth quarter 2011 – a 25% decline.  Deal value also dropped... [More]

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