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- Customer Service Center: Akron, Ohio
- FirstEnergy's Customer Service Center in Akron, Ohio, offers more services and more convenience features to maximize efficiency. The centerpiece of the HVAC system is a 45-ton, closed-loop GeoExchange system. This provides complete, accurate and even temperature control throughout the entire 15,360-square-foot structure. The lighting system was also designed to provide...
- Case studies
- FirstEnergy to acquire Allegheny for $4.7bn
- FirstEnergy agreed yesterday to acquire Allegheny Energy for $4.7bn in an all-stock deal that would create one of the largest utility groups in the US.The combined company would have 10 regulated power utilities across seven states; Pennsylvania, Ohio, Maryland, New Jersey, New York, Virginia and West Virginia. It would have 24,000 megawatts of generating capacity from coal, nuclear, natural gas, oil and renewable power.Some analysts think a deal between FirstEnergy and Allegheny could lead to more tie-ups in the utility sector, which they say is ripe for consolidation. Karl Miller, founder of MMC Energy, noted that the US has more than 250 mid-size and large utilities and distribution companies.But regulators have scuttled previous merger attempts by utilities. FPL, which owns Florida's largest utility, abandoned a $11.4bn takeover attempt of Constellation Energy group in 2006 after a face-off with regulators in Maryland, where Constellation is based. Exelon, a utility based in Chicago, dropped its plan in 2006 to buy Public Service Enterprise Group of New Jersey amid concerns by regulators in that state.In both cases, legislators raised concerns that the combined utility groups could lead to higher power rates.Anthony Alexander, FirstEnergy president and chief executive officer, said he did not anticipate any problem with regulators, given two of the six states involved do not require formal approval, and in the other four the companies have good relationships with regulators."We have very strong . . . customer satisfaction ratings in those states. We are active in the communities," Mr Alexander said.FirstEnergy said it expected to close the deal with Allegheny in 12 to 14 months. They expect the combined company, which would have more than 6m customers, to have $16bn in annual revenue and $1.4bn in annual net income, combining year-end 2009 figures.Under the agreement, Allegheny shareholders would receive 0.667 shares of FirstEnergy common stock for each share of Allegheny they own. Based on the closing stock prices for both companies on Wednesday, Allegheny shareholders would receive a value of $27.65 per share, or a total of $4.7bn. FirstEnergy also will assume about $3.8bn in Allegheny debt.The offer represents a premium of 31.6 per cent to the closing price of Allegheny on Wednesday, and a 22.3 per cent premium to the average stock price of Allegheny over the last 60 days. by Financial Times
- External links 2010-02-11
- FirstEnergy Agrees to Switch Coal Plant to Biomass
- In a first for the American power industry, a subsidiary of FirstEnergy called Ohio Edison has agreed to switch two coal-powered generators to biomass fuel, creating electricity by burning a mixture of wood, crop residues and other waste. The plan is the result of a Justice Department...
- Blog posts 2009-08-11
- FirstEnergy Makes Power Play For Allegheny
- A takeover worth billions gave the energy sector a jolt Thursday, but investors were leery of the combination. Akron, Ohio-based utility firm FirstEnergy ( FE - news - people ) announced that it would purchase rival Allegheny Energy ( AYE - news - people ) in a stock transaction initially...
- News items 2010-02-11
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