Two U.S. Utility Giants Just Got Even Larger

Two major electricity industry takeovers were announced within
a few days of each other. Energy Capital Partners, a private equity
firm, announced its planned acquisition of Calpine, the nation’s
largest generator of electricity using natural gas as a fuel. The
acquisition valued Calpine at $17.3 billion ($5.6 billion for the
common stock plus assumption of $11.7 billion of debt). Days later,
Sempra, a California-based utility, outbid Warren Buffet’s
Berkshire Hathaway to buy Oncor, a Texas utility spin off from a
disastrous private…

Two major electricity industry takeovers were announced within
a few days of each other. Energy Capital Partners, a private equity
firm, announced its planned acquisition of Calpine, the nation’s
largest generator of electricity using natural gas as a fuel. The
acquisition valued Calpine at $17.3 billion ($5.6 billion for the
common stock plus assumption of $11.7 billion of debt). Days later,
Sempra, a California-based utility, outbid Warren Buffet’s
Berkshire Hathaway to buy Oncor, a Texas utility spin off from a
disastrous private…