We want your news! Send us: News release |Letter to the Editor | Share a picture | Newborn | Birthday | Engagement | Wedding | Other Milestone
Today









Owner Of Nine Mile Point Nuclear Plants To Sell

With its stock price plunging, Constellation Energy agreed Thursday to sell itself to an energy company owned by one of the world’s greatest investors, Warren Buffett.

</p>The Nine Mile Point nuclear station in Scriba, in a photo provided by Constellation Energy.

The Nine Mile Point nuclear station in Scriba, in a photo provided by Constellation Energy.

MidAmerican Energy Holdings said it had agreed to buy Constellation Energy for $4.7 billion.  That’s about $26 per share of the company.  At the beginning of the year, Constellation was trading for more than $100 a share.  On Monday, it was trading for nearly $60 a share.

What the Baltimore Sun (where Constellation is headquartered) called a credit crisis made worse by possible speculation plunged the company into a financial crisis.  Debt ratings agencies acted during the week to downgrade Constellation’s credit rating, making it much more expensive for Constellation to borrow money to deal with its problems.  Buffett, the investor known as The Sage of Omaha, deployed one of the companies under his Berkshire Hathaway umbrella to scoop up the energy company at a bargain price.

“MidAmerican has been a wonderful steward of its energy assets and the acquisition of Constellation Energy, when completed, will prove beneficial to all constituents,” said Buffett in a news release.

Constellation owns the Nine Mile 1 and 2 nuclear power plants in Scriba, and is in the early stages of deciding whether to build Nine Mile 3.  It has proposed two plants, one here and one in Maryland, and had planned to build one of them.  The company isn’t talking about the status of its plans yet, but MidAmerican said it will let Constellation work without interference as the merger moves towards a closing date.  Constellation also owns the Ginna nuclear plant in Wayne County.

In a statement released Friday afternoon, State Assemblyman Will Barclay (R-Pulaski) said he will try to make sure that the jobs and pensions at the plant are not harmed by the merger:

“The news of this buyout may be beneficial for the area in light of Constellation’s recent financial problems. However, prior to supporting such a takeover, I will urge state regulatory officials to ensure that the buyout will not jeopardize the operation of the plants and that the workforce will be protected.

“I look forward to learning more about the proposed buyout and working with state officials to ensure that the Oswego nuclear plants will continue to provide the electricity and jobs that the area needs,” Barclay said.

A merger agreement between MidAmerican and Constellation is expected today, but the deal will take up to nine months to close.  Federal and state regulators have to sign off on it first, and their investigations may be lengthy and expensive.

Print This Post Print This Post

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

 

Search Our Archives:

Genna Losurdo Turns 6

Happy Birthday, Genna Losurdo!

Genna turns 6 today (Aug. 22).

Continue reading


Stuff-A-Bus Program Benefits Several Hundred County Students

In an effort to ensure every child is prepared for school, the United Way of Greater Oswego County held its annual “Stuff-a-Bus” campaign on Wednesday at different bus locations around the county. The school supplies will now be divided among the nine districts in the coming days.

Continue reading


‘Classic Moments’ Countdown: #10 First Oswegonian, Young Steve Gioia Jr. Wins Classic – 1976 International Classic

With 10 days remaining until the International Classic, the countdown continues with No. 10, as Steve Gioia Jr. became the first Oswegonian to win the Classic in 1976. The 1976 International Classic was touted as being “an early Christmas present” for car owner Bill Hite and driver Fred Graves. It was a forgone conclusion that their far superior, four-wheel drive rear-engine Supermodified, would be banned after the season ended.

Continue reading


David C. LeBeau, 70

David C. LeBeau, 70, of Fulton, went to be with the Lord on Friday August 15, 2014, at the VA Medical Center in Syracuse.

Continue reading


Oswego Cinema 7 Fri 08/22/14 – Tue 08/26/14

GUARDIANS OF GALAXY PG13 3D (DIGITAL) 9:40p GUARDIANS OF THE PG13 GALAXY (DIGITAL) 1:40p 4:20p 7:00p IF I STAY (DIGITAL) PG13 12:00p 2:30p 5:00p 7:30p 10:00p LET’S BE COPS (DIGITAL) R 12:05p 2:30p 4:55p 7:20p 9:45p TEENAGE MUTANT NINJA PG13 … Continue reading



v3_2014_64