FPL Group, Inc., and Entergy Corporation have jointly submitted an application to FERC for approval of their merger planned for the last quarter of 2001. In the filing, which is one of several requirements to be met before the merger can take place, the companies provide details of the proposed transaction, as well as expert testimony on financial, accounting, and market power issues.
The application also shows how the merger of equals bring together two well-managed companies and offers significant financial and strategic benefits to customers, shareholders, and employees of FPLGroup and Entergy. FERC will use the information filed to consider the proposed merger’s effect on rates, regulation, and competition. The filing also addresses the requirement for the companies to perform a market power analysis to assure FERC that the transaction does not adversely affect regional energy markets served by the companies. The competitive analysis already performed found no significant market power issues.
In addition, the application explains how FPL and Entergy will participate in regional transmission organizations, to alleviate concerns that the companies could exercise market power over transmission facilities. FPL Group and Entergy have requested FERC approval of the merger by June 1, 2001—approximately 180 days from the filing. Each of the two power companies had scheduled meetings on December 15 for their respective shareholders to vote on the merger, which would create the largest power company in the nation. For more information on the combined company, visit the Deal-Info website.
Based on a report from ElectricNet.com
