A look back at successes and setbacks in the energy industry.
Highs
ENBRIDGE — Enbridge Inc. on May 9 announced a series of transactions as part of the Canadian company's debt-reduction plan and pivot to regulated operations. Enbridge plans to sell its interests in certain North American and German renewable assets to the Canada Pension Plan Investment Board as part of a new joint venture for C$1.75 billion. Enbridge also agreed to sell its U.S. midstream natural gas and liquids business for US$1.12 billion to an affiliate of ArcLight Capital Holdings LLC. "We're modifying the asset mix to a pure pipeline utility model," Enbridge CEO Al Monaco said May 9 at the company's annual general meeting in Calgary, Alberta. "[W]ith the sale of our U.S. gathering and processing assets and a 49% interest in some of the renewables assets, we took a big step towards that pipeline-utility model. Those assets mean that we've now already completed the [C]$3 billion targeted for 2018."
CENTERPOINT — Rating agency and Wall Street analysts contend CenterPoint Energy Inc.'s plan to internally spin off its stake in Enable Midstream Partners would help stabilize earnings and could even bolster Enable's stock. CenterPoint executives said May 4 that they are reviewing an internal reorganization of gas subsidiary CenterPoint Energy Resources Corp., which would involve spinning CenterPoint's ownership interest in Enable Midstream into a new company known as CenterPoint Midstream. Morningstar Equity Research Charles Fishman said he sees the proposed move as predominantly helping to improve visibility for the rating agencies and equity investors, especially as CenterPoint moves forward with its planned purchase of Vectren Corp.
Between
SCANA — There is still little clarity on whether South Carolina lawmakers will slash South Carolina Electric & Gas Co.'s rates to offset the financial failure of the more than $9 billion V.C. Summer nuclear expansion. The regular session of the South Carolina General Assembly came to a close May 10 with the House of Representatives and state Senate still at odds over how much to cut the company's rates. A conference committee comprised of House and Senate members is working to resolve the impasse on the rate reduction and other V.C. Summer-related legislation, including the prospective repeal of South Carolina's Base Load Review Act. Dominion Energy Inc. has warned that efforts to strip cost recovery tied to the nuclear project could jeopardize its offer to acquire SCE&G parent SCANA Corp.
CALIFORNIA SOLAR — The California Energy Commission on May 9 approved a monumental statewide mandate requiring solar panels on all new single-family homes and low-rise apartment buildings beginning in 2020. The mandate is part of California's goal to slash greenhouse gas emissions 40% below 1990 levels by 2030 and 80% by 2050. The new requirement sparked a share price surge for rooftop solar companies, including Sunrun Inc. and Vivint Solar Inc. "I think the story is the industry is returning to growth," Sunrun CEO Lynn Jurich said May 9 on the company's first-quarter earnings call.
Lows
ENTERGY — Entergy New Orleans LLC acknowledged in a May 10 report that a subcontractor paid actors to pose as supporters of the utility's gas plant proposal at regulatory meetings. The Entergy Corp. subsidiary conducted an internal investigation of the allegations and said it had no prior knowledge of the actors who were paid to attend and speak at New Orleans City Council hearings in favor of its application to build a $210 million gas-fired power plant. The company said it discovered that Hawthorn Group, the public affairs firm it retained to mobilize supporters of the project, subsequently hired its own agency, Crowds on Demand, which in turn hired local actors to advocate for the plant's approval. The New Orleans City Council on March 8 voted 6-1 to approve construction of the 128-MW New Orleans Power Station.
