Shares of NiSource Inc., parent company of Northern Indiana Public Service Co. (NIPSCO), rose 60 cents (1.5%) last week after news that it has been engaged in “soft” merger talks with Dominion Resources. Citing industry sources, The Deal reported that NiSource and Dominion have been talking for months, but that pricing has prevented an agreement. One source said that the two companies have “chatted” but talks have not turned serious and NiSource is not working with a financial adviser.
The report said Duke Energy Corp., Exelon Corp., Southern Co. and American Electric Power Co. have been approached by industry bankers trying to assemble a deal to acquire NiSource. The company owns 15,700 miles of interstate gas pipelines and gas distribution operations in seven states in addition to NIPSCO, which provides power to 450,000 customers in 20 counties in northern Indiana.
Rumors of a NiSource-Dominion deal date back to at least December, when Mergermarket reported that Dominion was attempting to raise more than $10 billion in debt to acquire an unidentified Midwest utility. One analyst said Dominion was NiSource’s most likely acquirer because it is already involved in the interstate pipeline business and is interested in the Marcellus shale play, where NiSource has pipelines and storage.
More: The Deal
PPL’s Susquehanna 2 Down to Check Turbine Blades
Operators at PPL’s Susquehanna nuclear generating station shut down Unit 2 last week to check for cracked turbine blades. Equipment that monitors the turbines for excessive vibration indicated that some of the finely balanced turbine blades in the steam generator may have developed small cracks.
“We have been monitoring turbine performance closely for the last several years and continue to work with the manufacturer to address conditions that are associated with cracks developing,” said Timothy S. Rausch, PPL’s chief nuclear officer. “That’s why we decided to shut down Unit 2 now to inspect blades and replace any that are found to have developed cracks.”
Workers replaced turbine blades at Unit 1 during a refueling outage in May. After the Unit 2 inspection, PPL will install new blades during the 2015 refueling outage, Rausch said.
More: Market Watch
Atlantic City Electric, Union Reach Pact Through 2018
Atlantic City Electric Co. and the International Brotherhood of Electrical Workers Local 210 reached a labor agreement last week that lasts through 2018. Local 1238, which represents workers at the company’s Carneys Point call center, also agreed to extend its collective bargaining agreement to 2020.
Atlantic City Electric’s parent company, Pepco Holdings Inc., announced in April that it was merging with Exelon, who said it will honor all union contracts and not issue any merger-related layoffs for at least two years after the merger.
More: The Daily Journal
Regulatory Veterans Join to Open New Firm
Two former New York state regulators are opening a public utility consulting firm in Albany, N.Y. Maureen Harris, who served on the New York State Public Service Commission between 2006 and 2013, and Tom Dvorsky, former senior advisor to the commission, call their new firm Claritas Energy Advisors LLC.
More: Claritas Energy
Hess Sells Stake in NJ Plant to Investor Fund
Hess Corp. said it is selling its 50% stake in the Newark Energy Center to private equity firm Energy Investors Funds (EIF) for an undisclosed amount. The 705-MW natural gas-fired plant, currently under construction, is slated to go operational in May 2015. The transaction will make EIF the sole owner of the project. The plant is located on a 23-acre brownfield site adjacent to the Hess Newark petroleum storage terminal.
More: Energy Business Review
Cow Poop-to-Power Plant to Open in Fall
An Indiana developer is building a $7 million, 3-MW plant at a former gravel mine to turn cow manure to power. Brian Furrer said Green Cow Power should be running by September and will be the largest manure-fed power plant in the U.S. “We’re going to use less dirty coal in this country,” Furrer said. “That is just a fundamental fact of life. We’re going to do it through many different mechanisms. This is one mechanism that’s going to help.”
The plant will pump cow manure into tanks, where bacteria breaks it down and generates methane gas to produce power. Leftover solids are reused as bedding for cow barns, while leftover liquids are treated and spread on farm fields. The electricity will be sold to Northern Indiana Public Service Co. (NIPSCO).
More: The Elkhart Truth