American Bar Association Section of Public Utilities, Communications and Transportation Law REPORT OF THE FINANCE, MERGERS & ACQUISITIONS COMMITTEE 2015 Fall Council Meeting White Sulphur Springs, West Virginia October 15-17, 2015 Emmett N. Ellis, IV, Chair William T. Baker, Jr., Vice Chair Walter McFarland Beale, Jr., Vice Chair John J. Beardsworth Jr., Vice Chair Subcommittee Chair, Project Financing Melissa K. Caen, Vice Chair Jeffrey D. Cross, Vice Chair Patricia Dondanville, Vice Chair Robert J. Grey, Vice Chair David R. Hardy, Vice Chair William Lamb, Vice Chair Bruce Peterson, Vice Chair Monica W. Sargent, Vice Chair J. Anthony Terrell, Vice Chair Dynda Thomas, Vice Chair, Subcommittee Chair, Corporate Finance Robert B. Williams, Vice Chair * The Chairman thanks Steven C. Friend, Adam R. O’Brian, John Papaspanos and Patrick C. Jamieson for their help in compiling and preparing this report. Table of Contents Page I. RECENT DEVELOPMENTS ...................................................................................................1 SECTION A. Dedicated Rate Securitization ....................................................................1 SECTION B. Municipal Securities and MCDC ...............................................................1 a. MCDC Settlements ........................................................................................1 b. Edward Jones Settlement ...............................................................................3 SECTION C. Canadian Offerings .....................................................................................3 SECTION D. Energy Future Holdings Corp. and Oncor Electric Delivery Company LLC ............................................................................................5 SECTION E. Iberdrola, S.A. and UIL Holdings Corporation ..........................................6 SECTION F. The Southern Company and AGL Resources Inc. .....................................7 SECTION G. Emera Inc. and TECO Energy Inc. .............................................................8 SECTION H. Energy Transfer Equity, L.P. and The Williams Companies, Inc. .............9 SECTION I. Merger Progress Reports ..........................................................................10 a. Exelon Corporation and Pepco Holdings, Inc. ............................................10 b. Macquarie Infrastructure and Real Assets and Cleco Corp. .......................12 c. NextEra Energy, Inc. and Hawaiian Electric Industries, Inc. ......................12 d. Wisconsin Energy Corp. and Integrys Energy Group, Inc. .........................13 II. TRANSACTIONS UPDATE ..................................................................................................14 SECTION A. Telecommunications Transactions ...........................................................14 a. Brazil ...........................................................................................................14 b. Portugal .......................................................................................................14 c. United States ................................................................................................14 SECTION B. Oil and Gas Transactions ..........................................................................14 a. Australia ......................................................................................................14 b. Bermuda ......................................................................................................15 c. Canada .........................................................................................................15 d. Germany ......................................................................................................15 e. Great Britain ................................................................................................15 f. Kazakhstan ..................................................................................................16 g. Malaysia ......................................................................................................16 h. South Korea .................................................................................................16 i. Turkey .........................................................................................................16 j. United States ................................................................................................16 SECTION C. Electricity Transactions ............................................................................18 a. China ...........................................................................................................18 i Table of Contents (Continued) Page b. Israel ............................................................................................................18 c. Italy ..............................................................................................................18 d. Spain ............................................................................................................18 e. Sweden ........................................................................................................18 f. United States ................................................................................................19 SECTION D. Transportation Transactions .....................................................................19 a. Australia ......................................................................................................19 b. Belgium .......................................................................................................19 c. Bermuda ......................................................................................................19 d. Brazil ...........................................................................................................20 e. Canada .........................................................................................................20 f. China ...........................................................................................................20 g. France ..........................................................................................................20 h. Germany ......................................................................................................21 i. Great Britain ................................................................................................21 j. Mexico .........................................................................................................22 k. Singapore .....................................................................................................22 l. South Korea .................................................................................................22 m. United States ................................................................................................22 III. OFFERINGS AND FINANCINGS IN THE PUBLIC UTILITY, TELECOMMUNICATIONS AND TRANSPORTATION INDUSTRIES ............................24 SECTION A. PUBLIC UTILITIES, POWER GENERATION AND ENERGY ..........24 a. 8point3 Energy Partners LP ........................................................................24 b. The AES Corporation ..................................................................................24 c. Alabama Power Company ...........................................................................24 d. AltaLink, L.P. ..............................................................................................24 e. Appalachian Power Company .....................................................................24 f. Arizona Public Service Company ...............................................................25 g. Atlas Resource Partners, L.P. ......................................................................25 h. Azure Midstream Partners, LP ....................................................................25 i. Black Hills Corporation ...............................................................................25 j. Boardwalk Pipeline Partners, LP .................................................................25 k. Breitburn Energy Partners LP .....................................................................25 l. Calpine Corporation ....................................................................................25 m. Cheniere Energy Partners, L.P. ...................................................................26 n. Columbia Pipeline Group, Inc. ....................................................................26 o. Columbia Pipeline Partners LP ...................................................................26 p. Commonwealth Edison Company ...............................................................26 q. The Connecticut Light and Power Company ..............................................26 r. CONSOL Energy Inc. .................................................................................26 ii Table of Contents (Continued) Page s. Deepwater Wind Block Island, LLC ...........................................................26 t. Delmarva Power & Light Company ............................................................27 u. Dominion Resources Inc. ............................................................................27 v. Duke Energy Carolinas, LLC ......................................................................27 w. The Empire District Electric Company .......................................................27