Federal utility regulators have issued an order authorizing transactions the merger of utilities affiliated with Iberdrola, S.A. and UIL Holding Corporation.
Iberdrola is a Spanish-owned utility holding company, owning electricity and natural gas systems and electric generation across four continents. Its direct wholly owned subsidiary Iberdrola USA holds all of Iberdrola’s energy-related operations in the United States through two intermediate holding companies. Iberdrola USA Networks, Inc., holds transmission owning public utility affiliates, including New York State Electric & Gas Corporation (NYSEG), Rochester Gas and Electric Corporation, Central Maine Power Company, Maine Natural Gas Company, and interests in Maine Electric Power Company. Iberdrola Renewables Holdings, Inc. owns and operates its generation segment in the United States through a number of indirect subsidiaries.
UIL is in the business of ownership of operating regulated utilities in Connecticut and Massachusetts. It owns and controls the United Illuminating Company, a business engaged in purchasing, transmitting, and distributing electric power to customers in southwestern Connecticut. United Illuminating owns a 50 percent equity interest in GCE Holding LLC which in turn owns two companies owning 187.6 MW dual-fuel generating plants in Milford and Middletown, Connecticut. UIL also owns natural gas local distribution companies in central and southern Connecticut and western Massachusetts, as well as Total Peaking Services, LLC which provides liquefied natural gas storage services.
On February 26, 2015, Iberdrola S.A. announced the boards of directors of Iberdrola S.A. and Iberdrola USA had approved a combination of Iberdrola USA with UIL Holdings in a friendly transaction, reportedly for about $3 billion. On March 25, 2015, Iberdrola and UIL applied to the Federal Energy Regulatory Commission for authorization under section 203(a)(1) and (a)(2) of the Federal Power Act (FPA) for a series of transactions in which UIL will become an indirect wholly owned subsidiary of Iberdrola USA and, in turn, a wholly owned subsidiary of Iberdrola.
In a Section 203 case, the Commission examines a merger’s effect on competition, rates and regulation, and the potential for cross-subsidization. Applicants must demonstrate that a proposed disposition or acquisition of jurisdictional facilities meets the standards of Section 203. In the Iberdrola-UIL case, the applicants stated that their subsidiaries' portfolios of generation, transmission, natural gas assets, and other jurisdictional facilities had only de minimis overlap, that the transaction would not adversely affect rates or regulation, or result in cross-subsidization of a nonutility associate company or pledge or encumbrance of utility assets for the benefit of an associate company.
On June 2, 2015, the Commission issued an order finding that the proposed transaction is consistent with the public interest and is authorized, subject to routine conditions. While other regulatory approvals may be required before the merger can proceed, securing prior authorization under Section 203 is an important milestone for the proposed deal.
According to Iberdrola, the combined company will have a 2014 pro forma EBITDA of approximately $2 billion, net income of $570 million, 3.1 million of points of supply, around 6.7 GW of installed capacity. Iberdrola anticipates that the company will become the US's second largest wind operator and one of the nation's largest utilities.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label Iberdrola. Show all posts
Showing posts with label Iberdrola. Show all posts
Virginia offshore wind site leases to be auctioned
Thursday, August 8, 2013
Next month the United States will auction off the rights to develop offshore wind energy projects off the Virginia coast. The Virginia auction's results will shape the development of offshore wind in North America, as it will represent the nation's second competitive lease auction for commercial offshore wind projects.
As part of the Obama administration's efforts to promote the use of federal lands for the generation of renewable electricity, the federal Bureau of Ocean Energy Management is holding a series of auctions of the rights to lease sites in federal waters over the outer continental shelf. On July 31, BOEM held an auction for sites off Massachusetts and Rhode Island. In that auction, Deepwater Wind New England, LLC submitted the winning bid of about $3.8 million for the rights to lease two parcels covering 164,750 acres offshore New England.
BOEM will hold its second competitive lease auction on September 4 for sites off Virginia. The Virginia auction will be for a single lease for a designated wind energy area covering about 112,799 acres. The western edge of the lease area is located about 23.5 nautical miles off the Virginia Beach coastline. If fully developed, BOEM expects the Virginia lease area to support more than 2,000 megawatts of wind generation.
BOEM's current offshore wind leasing program - known as "Smart from the Start" - features a process reliant on multiple rounds of proposals and calls for public feedback. For Virginia waters, that process began in February 2012 when BOEM published a Call for Information and Nominations in the Federal Register. The Call was designed to evaluate competitive interest for the area, as well as to seek public feedback on existing uses and other considerations relevant to leasing the sea space. Simultaneously, BOEM published a Notice of Availability for the final Environmental Assessment and Finding of No Significant for commercial wind lease issuance and site assessment activities on the Atlantic outer continental shelf offshore New Jersey, Delaware, Maryland, and Virginia.
BOEM received eight nominations of interest in the lease area in response to the Call. The eight companies responding with interest were:
As with the recent auction for sites off Rhode Island and Massachusetts, some of these companies may not choose to participate in the auction. While BOEM had found nine companies to be legally, technically, and financially qualified to participate in the New England auction, only three actually submitted bids. For example, Fisherman's Energy and Iberdrola Renewables both qualified for the New England auction, but did not bid.
Assuming interest remains in the Virginia sites, the September auction is expected to yield a single winner. That winning bidder will pay the amount specified in the final bid for the right to lease part or all of the Virginia wind energy area. Development of an offshore wind project would then require a series of additional steps, ranging from financing to permitting to interconnection with the mainland grid. Whether the auction actually leads to offshore wind development off Virginia will thus depend on a number of factors, but the September auction will represent an important step toward the development of the United States' offshore wind resources.
As part of the Obama administration's efforts to promote the use of federal lands for the generation of renewable electricity, the federal Bureau of Ocean Energy Management is holding a series of auctions of the rights to lease sites in federal waters over the outer continental shelf. On July 31, BOEM held an auction for sites off Massachusetts and Rhode Island. In that auction, Deepwater Wind New England, LLC submitted the winning bid of about $3.8 million for the rights to lease two parcels covering 164,750 acres offshore New England.
BOEM will hold its second competitive lease auction on September 4 for sites off Virginia. The Virginia auction will be for a single lease for a designated wind energy area covering about 112,799 acres. The western edge of the lease area is located about 23.5 nautical miles off the Virginia Beach coastline. If fully developed, BOEM expects the Virginia lease area to support more than 2,000 megawatts of wind generation.
 |
| The Virginia Wind Energy Area is outlined in blue in this map provided by BOEM. |
BOEM's current offshore wind leasing program - known as "Smart from the Start" - features a process reliant on multiple rounds of proposals and calls for public feedback. For Virginia waters, that process began in February 2012 when BOEM published a Call for Information and Nominations in the Federal Register. The Call was designed to evaluate competitive interest for the area, as well as to seek public feedback on existing uses and other considerations relevant to leasing the sea space. Simultaneously, BOEM published a Notice of Availability for the final Environmental Assessment and Finding of No Significant for commercial wind lease issuance and site assessment activities on the Atlantic outer continental shelf offshore New Jersey, Delaware, Maryland, and Virginia.
BOEM received eight nominations of interest in the lease area in response to the Call. The eight companies responding with interest were:
- Apex Virginia Offshore Wind, LLC
- Arcadia Offshore Virginia, LLC
- Cirrus Wind Energy, Inc.
- Dominion Virginia Power
- enXco Development Corporation
- Fisherman’s Energy, LLC
- Iberdrola Renewables Inc.
- Orisol Energy US, Inc.
As with the recent auction for sites off Rhode Island and Massachusetts, some of these companies may not choose to participate in the auction. While BOEM had found nine companies to be legally, technically, and financially qualified to participate in the New England auction, only three actually submitted bids. For example, Fisherman's Energy and Iberdrola Renewables both qualified for the New England auction, but did not bid.
Assuming interest remains in the Virginia sites, the September auction is expected to yield a single winner. That winning bidder will pay the amount specified in the final bid for the right to lease part or all of the Virginia wind energy area. Development of an offshore wind project would then require a series of additional steps, ranging from financing to permitting to interconnection with the mainland grid. Whether the auction actually leads to offshore wind development off Virginia will thus depend on a number of factors, but the September auction will represent an important step toward the development of the United States' offshore wind resources.
Feds to hold first offshore wind auction
Wednesday, June 5, 2013
The U.S. Department of the Interior has announced plans to hold a competitive lease sale for renewable energy on the Outer Continental Shelf offshore Rhode Island and Massachusetts. According to a Final Sale Notice published in today's Federal Register, the auction, scheduled to be held by the Bureau of Ocean Energy Management on July 31, will be the first auction of its type for offshore wind site leases in U.S. waters.
The auction will cover about 164,750 acres of sea space in a
previously defined Wind Energy Area located 9.2 nautical miles south of
the Rhode
Island shore. For leasing purposes, the BOEM has divided the area into two leases. The North Lease Area
(Lease OCS-A0486) consists of about 97,500 acres, and is estimated to
have the potential for an installed capacity of 1,955 megawatts of
electric generation. The South Lease Area
(Lease OCS-A0487) covers about 67,250 acres, and is estimated to have
the potential for an installed capacity of 1,440 megawatts.
Based on a review by the National Renewable Energy Laboratory, the Bureau of Ocean Energy Management has concluded that the North and South Lease Areas have significantly dissimilar attributes that make the North Lease area "a more competitive and cost effective area for near term commercial development." The Bureau thus set the minimum bid for the North Lease Area will be $2 per acre, or $194,996, while the minimum bid for the South Lease Area will be $1 per acre, or $67,252.
BOEM has pre-screened and approved nine companies as bidders in the auction:
BOEM has described the auction as the "first-ever competitive lease sale for renewable energy on the U.S. Outer Continental Shelf." How the auction runs -- and its results -- will be informative as to the future of offshore wind in U.S. waters.
 |
| Map of the Rhode Island and Massachusetts Lease Areas, courtesy of BOEM. |
Based on a review by the National Renewable Energy Laboratory, the Bureau of Ocean Energy Management has concluded that the North and South Lease Areas have significantly dissimilar attributes that make the North Lease area "a more competitive and cost effective area for near term commercial development." The Bureau thus set the minimum bid for the North Lease Area will be $2 per acre, or $194,996, while the minimum bid for the South Lease Area will be $1 per acre, or $67,252.
BOEM has pre-screened and approved nine companies as bidders in the auction:
- Deepwater Wind New England, LLC
- EDF Renewable Development, Inc.
- Energy Management, Inc.
- Fishermen’s Energy, LLC
- IBERDROLA RENEWABLES, Inc.
- Neptune Wind, LLC
- Sea Breeze Energy, LLC
- U.S. Mainstream Renewable Power (Offshore) Inc.
- US Wind Inc.
BOEM has described the auction as the "first-ever competitive lease sale for renewable energy on the U.S. Outer Continental Shelf." How the auction runs -- and its results -- will be informative as to the future of offshore wind in U.S. waters.
2/24/10: some news from Maine
Wednesday, February 24, 2010
Maine roundup for today
The announced closure of the Bumble Bee sardine cannery in Prospect Harbor continues to be troubling. 128 jobs to be lost. Governor Baldacci says the state will help find a new business, and could designate the cannery as a Pine Tree Zone, allowing the new owner to be exempt from 80% percent of its employee tax withholding for the next 10 years.
Tissue manufacturer Lincoln Paper and Tissue forecasts 2010 as a moderately successful period of no major investments or substantial new hiring. LP&T's CEO Keith Van Scotter has considered switching the fuel for its steam boilers from No. 2 heating oil to natural gas, but can't do so without help from state or federal government.
Landfill gas to energy: the City of Old Town, University of Maine, and Casella Waste Management have requested $3 million in federal stimulus funding to construct a 6-mile gas pipeline allowing gas from the Juniper Ridge Landfill (operated by Casella on behalf of the state) to flow to the steam plant at the university. Phase I consists of building the pipeline and upgrading the steam plant, and would significantly reduce carbon dioxide emissions. Phase II involves building an electricity generating facility connected to the landfill by a second pipeline. These plans are tied into the nascent Maine Green Energy Alliance, an entity owned by Casella that aims to generate electricity and sell it directly to participating municipalities like Old Town. Landfill gas remains somewhat contentious, with some opposing the project on environmental and fiscal policy grounds.
Maine does have experience with the Pine Tree Landfill in Hampden, also operated (and owned) by Casella. The $10 million Pine Tree Landfill gas project commenced operation in 2008, and is projected to produce enough methane gas to power up to 3,000 homes for 15 years or more. In 2009 a similar project was launched at the Crossroads Landfill in Norridgewock.
Bangor Daily News editorial yesterday lauding Eastern Maine Electric Cooperative (EMEC) for its customer-oriented culture and low prices, noting that the customer-owned utility cut power prices by 10% last year. The editorial is careful not to bash investor-owned utilities, but hints that their profit-to-shareholder motives may result in worse rates or service than customers can get from coops like EMEC.
Elsewhere:
Bloom boxes unveiled. Lots of buzz still, relatively few details. We have learned that commercial-scale units cost $700,000 to $800,000, and that five Bloom Energy Servers deployed by EBay last July produce electricity to power space for 2,000 to 3,000 employees and cut eBay's power bill by $100,000 so far. Interestingly, EBay uses natural gas as the fuel, but plans to convert to landfill gas soon.
Iberdrola anticipates profit growth over the next three years.
The Senate continues to wrestle with the carbon bill, with carbon pricing remaining as the sticking point. Cap and trade? Cap and dividend? Carrot and stick?
The announced closure of the Bumble Bee sardine cannery in Prospect Harbor continues to be troubling. 128 jobs to be lost. Governor Baldacci says the state will help find a new business, and could designate the cannery as a Pine Tree Zone, allowing the new owner to be exempt from 80% percent of its employee tax withholding for the next 10 years.
Tissue manufacturer Lincoln Paper and Tissue forecasts 2010 as a moderately successful period of no major investments or substantial new hiring. LP&T's CEO Keith Van Scotter has considered switching the fuel for its steam boilers from No. 2 heating oil to natural gas, but can't do so without help from state or federal government.
Landfill gas to energy: the City of Old Town, University of Maine, and Casella Waste Management have requested $3 million in federal stimulus funding to construct a 6-mile gas pipeline allowing gas from the Juniper Ridge Landfill (operated by Casella on behalf of the state) to flow to the steam plant at the university. Phase I consists of building the pipeline and upgrading the steam plant, and would significantly reduce carbon dioxide emissions. Phase II involves building an electricity generating facility connected to the landfill by a second pipeline. These plans are tied into the nascent Maine Green Energy Alliance, an entity owned by Casella that aims to generate electricity and sell it directly to participating municipalities like Old Town. Landfill gas remains somewhat contentious, with some opposing the project on environmental and fiscal policy grounds.
Maine does have experience with the Pine Tree Landfill in Hampden, also operated (and owned) by Casella. The $10 million Pine Tree Landfill gas project commenced operation in 2008, and is projected to produce enough methane gas to power up to 3,000 homes for 15 years or more. In 2009 a similar project was launched at the Crossroads Landfill in Norridgewock.
Bangor Daily News editorial yesterday lauding Eastern Maine Electric Cooperative (EMEC) for its customer-oriented culture and low prices, noting that the customer-owned utility cut power prices by 10% last year. The editorial is careful not to bash investor-owned utilities, but hints that their profit-to-shareholder motives may result in worse rates or service than customers can get from coops like EMEC.
Elsewhere:
Bloom boxes unveiled. Lots of buzz still, relatively few details. We have learned that commercial-scale units cost $700,000 to $800,000, and that five Bloom Energy Servers deployed by EBay last July produce electricity to power space for 2,000 to 3,000 employees and cut eBay's power bill by $100,000 so far. Interestingly, EBay uses natural gas as the fuel, but plans to convert to landfill gas soon.
Iberdrola anticipates profit growth over the next three years.
The Senate continues to wrestle with the carbon bill, with carbon pricing remaining as the sticking point. Cap and trade? Cap and dividend? Carrot and stick?
Subscribe to:
Posts (Atom)
