Soon after the Florida Progress sale was disclosed, Wall Street was wondering if TECO Energy Inc. in Tampa could be next. But utility mergers and acquisitions are not a sure thing. Deals have been scuttled over regulators' concerns about stifling competition. Consumer advocates question the benefits to customers. Floridians may have particular reason for concern.
Outdated legislation denies Florida regulators explicit authority over utility mergers.
Still, an army of federal regulators scrutinize mergers. The lengthy review is the reason 23 deals are pending, including some that were announced nearly two years ago. As with any kind of experimentation, it doesn't always work. The business of uncertainty States that have high electric rates, such as California and Massachusetts, were the first to throw open the doors to competition. Consumers in those areas, especially large industrial and commercial users, wanted lower prices and better service.