May 31, 2006
Utility Company Mergers
It had to happen. Congress repeals the Public Utility Holding Company Act of 1935 that prohibited large utility companies and utility companies are racing to merge. Mirant Corporation, bankrupt in 2003, now owns 24 power generating plants in California and the Northeast. Mirant is attempting a buyout of NRG Energy for $7.8 billion. NRG , a New York company, has itself been buying up companies in Texas. It is like the proverable fish eats fish eats fish diagram. Some of the mergers are driven by cost savings and some by wishful thinking.
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