Wall Street Speaks Out: Utilities are abandoning their fast-growth, for-profit ventures and embracing a 'back to basics' strategy, but will it last?

摘要

The utility sector has experienced some major highs and lows over the past five years. The consequences of deregulation efforts, including the rise and fall of merchant generation and energy trading, have had a major impact on the stock prices of utilities. Likewise, merger and acquisition attempts have negatively affected stock prices. Utilities paid a premium of as much as 50% over value, often funding the purchase with debt. Merged utilities had trouble hanging onto savings from cost cutting and restructuring as regulators typically held the merger process hostage until both parties agreed to return a significant portion of any savings to customers.