Electric and Gas Utility Mergers and Acquisitions

Gain an understanding of regulatory diligence for utility transactions and less well-known regulatory requirements.

Utility mergers and acquisitions generally do not follow the same structure and process as mergers and acquisitions in other sectors. Because of the oversight and regulation that utilities are subject, any merger or acquisition must be structured in a way that accomplishes their corporate objectives and satisfies the regulatory regime that they are subject. This topic will discuss the deal structures that are utilized for utility mergers and acquisitions and will examine the language used in the various provisions that are specific to utility mergers and acquisitions. Additionally, many utility M&A or asset purchase transactions require federal and state regulatory approvals that must be obtained prior to closing. Utilities and their assets are also subject to extensive regulation that may impact the transaction and its economics, necessitating diligence of complex regulatory issues. This information will identify FERC and state approvals for electric, natural gas, and oil transactions, provide an overview of regulatory diligence for transactions, and discuss less well-known or discussed regulatory requirements such as obtaining FCC approval for certain utility transactions.