Should gas LDCs team up with electric utilities?
✍ Scribed by Willett, Robert E.
- Publisher
- John Wiley and Sons
- Year
- 2008
- Weight
- 256 KB
- Volume
- 7
- Category
- Article
- ISSN
- 0743-5665
No coin nor oath required. For personal study only.
✦ Synopsis
In the gas or electric industries, acombination company is a utility that ofers both gas and electric paver.
It is gas-industry wisdom that such companies seem to favor electricity over gas. The feeling is that in these companies, the senior management, which frequently is made up of executives who came up from the electric side, seems to ignore gas. The outlook for any immediate change in this bias is bleak, but it wasn't ahvays that way, nor, in the opinion of many gas executives, should it continue to be.
I discussed this situation with several gas executives. Two of the best-spoken were Ronald F. Cassinari, a securities analyst in the New York City ofice of Advest Inc.. a securities brokerage, and Russell Fleming, senior vice presidentofNew YorkState Electric andGas,a combination company. Fleming is in charge of NYSEG's gas business unit. I spoke with Cassinarijirst.
Advantages to the Shareholder
NG:
From the point of view of the investor, are there advantages to separation? Cizssinan: If you operate a combination electric and gas utility company, you benefit from economies of scale and cost-sharing, and that is pretty obvious. You have this built-