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:

Dancing Princesses at Granby Elementary

Dancing princesses flooded the Granby Elementary auditorium at the Halloween Party sponsored by the Parent-Teacher Group the night before Halloween. Disney Princess Elsa from the movie “Frozen” seemed to be a popular costume choice among the youngsters in Granby.

Continue reading


Neil’s late goal lifts Oswego State men’s ice hockey team

Kenny Neil’s goal in the final minute of regulation lifted the Oswego State men’s ice hockey team over host Buffalo State 4-3 on Friday night at the Ice Arena. The Lakers erased a three-goal deficit in the second period and Neil’s second goal of the contest secured the victory in the team’s SUNYAC and regular season opener.

Continue reading


Woman’s ice hockey falls in opener

The Oswego State women’s ice hockey team fell 2-0 to Castleton State College on the road in its season-opener. Oswego goes to 0-1-0 on the early season. The Lakers were neck-and-neck with the Spartans through one period, ending the first 20 minutes in 0-0 tie.

Continue reading


Oswego County Bar Association Reviews of Judicial Candidates

The Oswego County Bar Association recently voted to approve the report of the Judicial Screening Committee that found both candidates for Oswego County Family Court, to wit: James K. Eby and Lou Anne Rucynski Coleman, to be “Recommended as Qualified” for the position.

Continue reading


Sandra Scott Travels: Wine Trail A treat For The Taste Buds

John and I like to break up our road trips by stopping at new places. On our way to visit family in Ohio, we had a wonderful stay at The Lodge at Geneva-on-the-Lake. Yes, there is more than one Geneva-on-the-Lake. The one in Ohio is part of Geneva State Park where there is picnicking, camping, cabins, boating, trails, swimming, fishing and more. The lodge is a beautiful resort with rooms that have great views of Lake Erie. The first day we were there it was rainy and the lake was kicking up but the next morning the water calmed, the sun came out, and it was beautiful.

Continue reading



v3_2014_64