NEW YORK & WASHINGTON, DC, November 4, 2002 — Trans-Elect, Inc. and Miller McConville & Company today announced that they have formed a non-exclusive Joint Venture to acquire selected assets from electricity and gas utilities in North America.
As the nation’s only truly independent transmission company Trans-Elect will focus exclusively on ownership of electric transmission assets, while Miller McConville & Company seeks ownership of electric generation and distribution, natural gas systems and associated assets.
The two companies have decided to work in concert on selected acquisition deals because many utility companies prefer to sell entire integrated systems that include generation, transmission and distribution assets rather than selling transmission assets separately.
Trans-Elect and Miller McConville & Company are prepared to make offers for entire systems and then divide ownership of acquired assets according to each company’s business focus.
“This is a business model that ensures regulatory compliance through the combination of independent transmission ownership by Trans-Elect with power generation and natural gas distribution ownership by our Joint Venture partner,” explained Frederick W. Buckman, Chairman and Chief Executive Officer of Trans-Elect. “We are creating another sound economic way to support the direction of the Federal Energy Regulatory Commission [FERC] to separate independent transmission from market participant activity in generation and distribution,” he added.
“Creative business combinations like this are particularly important now as companies seek new ways to bring credibility and confidence back into the combined natural gas and electric power sector,” said Karl W. Miller, Senior Partner at Miller McConville & Company.
Under the agreement, Trans-Elect, Inc. will continue to independently own and operate its entire current and future transmission portfolio. Miller McConville & Company will own, operate and control the acquired power generation, distribution and associated fuel contracts.
There will be a clear bifurcation of the ownership and control for operating, regulatory and financial purposes. This bifurcation supports the commitment of the FERC to separate transmission assets for generation and distribution.
The Joint Venture intends to be a first mover in the acquisition and consolidation of integrated power and gas distribution portfolios as well as individual power generation facilities with affiliated transmission assets. The Joint Venture will substantially increase the size, scope and timing of asset acquisitions for both Trans-Elect and Miller McConville.
Trans-Elect, the nation’s first and only truly independent electric transmission company, is currently involved in assets totaling over $1 billion and representing 14,500 miles of transmission line. Its mission is to buy, own and operate independent transmission systems subject to FERC jurisdiction. Trans-Elect, founded in 1999, is headquartered in Reston, Virginia.
Miller McConville & Company is a New York-based energy acquisition boutique formed by a senior industry management team. Its objectives are to acquire, control and manage performing and distressed power and natural gas assets, including associated fuel contracts in North America and Europe.
The company partners have substantial operational, financial and acquisition experience in the power and natural gas industry. The company has made a long-term commitment to restore credibility and investor confidence back into the sector.