Exelon rejects offers: Exelon Generation Co. and British Energy have agreed to reject all offers for the purchase of AmerGen Energy Co. and to terminate the auction process. Both parties reviewed the bids and concluded none were “adequate.” With the rejection of these offers, Exelon no longer intends to sell its interest in AmerGen. With the termination of the sale process, Exelon has decided to continue its investment in AmerGen, and the three AmerGen plants will continue to operate as they have to date.
ComEd to contribute: ComEd will contribute a total of $40 million to fund programs to boost energy efficiency in Chicago and the rest of Northeastern Illinois under an agreement reached between the company, the Citizens Utility Board and other consumer agencies. The agreement, if approved by the Illinois Commerce Commission, would settle litigation over whether ComEd’s “mismanagement” contributed to higher costs for repairs of the company’s distribution system.
TXU cuts management: TXU has made management changes designed to reduce costs, streamline the organization and increase focus on the operations of its core businesses in North America, according to the company. In March, the company announced that it was in the process of reducing officers overall by about 30 percent as part of the company’s action plan to cut 2003 costs by a net $250 million from 2002 levels.
Mergers & acquisitions
Tetra Tech purchases portion of Foster Wheeler: Foster Wheeler Ltd. announced the sale of the operating business of its wholly owned subsidiary, Foster Wheeler Environmental Corp. (FWENC), to Tetra Tech Inc. As of the close, the company received immediate net cash proceeds of approximately $80 million. Foster Wheeler also expects to receive an additional $57 million before the year’s end under FWENC’s contract with a federal agency, which was not included in the sale.
Legal & regulatory
Wisconsin Power & Light requests increase: Wisconsin Power & Light Co. filed a request with the Public Service Commission of Wisconsin for approval to increase overall retail base rates. The company is requesting an overall increase of $65.1 million or 6.62 percent. If the proposed rate changes requested were applied to the 2003 rate levels, typical residential electric customers using 600 kWh per month would see a monthly increase of approximately $5.08 on their bills.
PacifiCorp given OK: ScottishPower announced that its U.S. subsidiary, PacifiCorp, was granted recovery of approximately $9 million of the company’s $20 million general rate case request from the Wyoming Public Service Commission. As part of the proceedings, the Commission disallowed PacifiCorp’s requests for $60.3 million of net excess power costs related to the western power crisis and for $30.7 million to replace the lost generation due to the Hunter 1 plant failure.
CMS Energy Corp.: Belinda Foxworth was elected deputy general counsel.
El Paso Corp.: Clark Smith, formerly president of global power, will become president of trading. Robert Baker, formerly senior vice president and deputy general counsel, will be promoted to president of global power.
American Superconductor: Stanley Piekos has resigned his position as senior vice president, finance and corporate development, and chief financial officer.
KEMA: Dr. Ralph Masiello has joined the company as senior vice president of bulk power services.
Invensys: Ryan Roberts has been appointed vice president and general manager of services for the company’s manufacturing and process solutions business unit.
EPRI: Dave Modeen is chief nuclear officer and vice president of the nuclear power sector.