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:

Fulton Rotary Visits Michaud Nursing Home

The Fulton Noon Rotary Club members recently visited the Michaud Nursing Home. The Rotarians learned about the changes in Medicare and Medicaid and how they effect long- and short-term patients in extended personal care facilities in our state.

Continue reading


Health Department Announces Clinic Schedule for Week of Oct. 27

The Oswego County Health Department is offering influenza immunization clinics for people age 19 and older weekdays at the Nick Sterio Public Health Clinic, 70 Bunner St., Oswego.

Continue reading


Half-Shire Group Hosts Parish Historical Society Nov. 8

The Parish Historical Society will meet at noon Nov. 8, at the Half-Shire Historical Society Museum, County Route 48, Richland. The Half-Shire chefs will serve their famous chicken and stuffing dinner and president Shawn Doyle will present an update on recent developments.

Continue reading


Sandra Scott Travels: It’s The Season To Take In A Haunting – Or Two

The Rolling Hills Asylum in East Bethany is a sprawling brick building built in 1827 as The Genesee County Poor Farm and in the 1950s it was a county home and infirmary. Over the years, people reported strange occurrences of the paranormal kind. It was declared the “Second Most Haunted Place in the United States” by Haunted North America and has been featured on many TV shows. Forts are often places with hauntings and Fort Ontario is no exception.

Continue reading


Mexico Man Convicted Of Sex Crimes

An Oswego County jury today (Oct. 23) convicted Richard M. Switts, 40, of Mexico, of six counts second-degree criminal sexual act (Class D violent felony); two counts of second-degree sexual abuse (Class A Misdemeanor); and three counts of third-degree sexual abuse (Class B misdemeanor).

Continue reading



v3_2014_64