Company Briefs

Direct Completes Hess Deal, Becoming #2 Competitive Retail Power Supplier for Business

Nov 5, 2013

News briefs on companies in PJM Interconnection: Direct Energy Business, Exelon, Sunpower Corp., and First Energy.

Maura Clark, President of combined Direct Energy - Hess Corp. — Maura Clark

Direct Energy Business LLC last week closed its purchase of Hess Corp.’s New Jersey-based energy marketing business, making the combined company the largest business gas supplier on the East Coast and the second largest business power supplier in competitive U.S. retail markets. Direct, a subsidiary of Centrica plc, paid $731 million in cash plus net working capital, estimated at approximately $300 million.

Hess’ energy marketing business had revenues of over $6 billion in 2012 and is expected to deliver around $200 million of EBITDA in 2013. Its assets include purchase agreements with Marcellus shale gas producers, gas storage and pipeline capacity, and gas and power supply agreements. It also has a tolling arrangement on the Bayonne Energy Center gas-fired power plant, to supply power to customers in New York.

Maura Clark, who headed Direct Energy’s commercial and industrial business prior to the acquisition, will be president of the combined company.

More: Centrica plc

Exelon Baltimore Building Nears OK

Drawing of planned Exelong HQ in Baltimore (Source: BHC Architects)

Exelon Corp.’s plans for a corporate office building in Baltimore took a step forward as the city’s design panel recommended approval of a plan to add 103 apartments where office space was originally planned. The 23-story building — part of a $250 million first phase of the city’s Harbor Point development – will also include a 70,000-square-foot trading floor.

More: The Baltimore Sun

#2 Panel Maker Boosts Capacity as Solar Industry Slump Ends

SunPower Corp., the second-largest U.S. solar-panel maker, plans to boost manufacturing capacity by 25% in a signal that the industry is emerging from a two-year slump triggered by a global oversupply. Bloomberg Industries’ Large Solar Energy Index, which fell 87% between February 2011 and November 2012, has regained 55% of its value in the past year with SunPower shares quintupling.

More: Bloomberg

Potomac Edison Workers Picket for New Deal

Local 102 of the Utility Workers Union of America is picketing FirstEnergy’s Potomac Edison office in Frederick, Maryland, to pressure the company for a new contract to replace a deal that expired April 30. The employees have continued to work while picketing weekly. Local 102 represents about 680 linemen, substation workers, meter readers and technicians, and support personnel of Potomac Edison and West Penn Power, as well as 86 corporate employees.