Electricity merger

CRA was retained in connection with a proposed merger of two utilities that owned substantial fleets of unregulated generation in the same geographic market. Anticipating and responding to market power concerns of federal and state regulators, CRA staff helped craft a divestiture package that satisfied regulatory concerns while preserving merger synergies. The transaction with the proposed divestiture was approved by the DOJ, FERC, and the state regulatory agency before which CRA’s expert testified. Due to further conditions required by a second state’s regulators, the applicants ultimately decided not to pursue the merger.