Mergers, Acquisitions & Divestitures

Utility mergers, acquisitions and divestitures are extremely complex undertakings owing to stringent regulatory approvals at the federal, state and local levels. They often require the need for complex multiparty agreements and involve pension, personnel, organizational and complex tax and severance matters. The resulting capital structure and acquisition premiums can have a significant effect on the new entities’ rates.

Negotiated acquisitions, or the condemnation of utility plant by municipalities, can also be subject to significant legal and regulatory approvals and often result in protracted litigation over the value of the properties being acquired, physical severance requirements, and stranded cost claims.

ERG offers a broad breadth of experience and comprehensive capabilities in providing consulting support to regulators, utilities and municipalities faced with divestiture, merger, or acquisition of utility operations, physical plant, and support systems.

  • Feasibility Studies
  • Complex Economic & Financial Analyses
  • Valuations & Independent Appraisals
  • Litigation Support & Expert Testimony
  • Financing Support
  • Rate Design & Cost-of-Service Analyses
  • Physical Inspection of Properties
  • Physical & Functional Severance Valuations
  • Depreciation & Tax Value Studies
  • Regulatory Treatment
  • Separation & Transition Plans
  • Supply & Demand-Side Planning

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