Justice Department Closes Vistra-Cogentrix Antitrust Probe After Added Divestiture, Citing Tens of Millions in Expected Annual Savings for New England Consumers
The U.S. Department of Justice issued a statement on October 30 in which Associate Attorney General Stanley E. Woodward, Jr. announced the outcome of the Antitrust Division's investigation into Vistra Corp.'s acquisition of Cogentrix Energy: after the Federal Energy Regulatory Commission (FERC) approved the deal, the parties unilaterally decided to sell Cogentrix's gas-fired combined-cycle power plant in Rumford, Maine, and the Division closed its investigation, saying it will continue to monitor the sale.
Vistra announced on January 5 that it would acquire Cogentrix from Quantum Capital Group. The two companies' generation portfolios overlap in three regional markets: PJM Interconnection, ISO New England (ISO-NE), and the Electric Reliability Council of Texas. During FERC's review, ISO-NE's internal market monitor raised concerns that the deal could reduce competition; Vistra then unilaterally sold its Casco Bay Energy facility in ISO-NE, and FERC approved the transaction without conditions. The Division nevertheless continued investigating whether the combined firm could withhold electricity from the ISO-NE market and raise prices.
'Electricity customers in Maine, New Hampshire, and across New England will benefit from continued competition to generate affordable electricity,' Woodward said. 'The Division anticipates that Vistra's divestitures will save consumers throughout New England tens of millions of dollars annually in electricity bills.' Deputy Assistant Attorney General G. Charles Beller of the Antitrust Division said the Division has developed sophisticated methods for reviewing electricity generation mergers and will continue to monitor electricity transactions and the sector as a whole.
Source: GSM · USA (original Chinese edition)
Photo: 图：美国司法部总部大楼。GSM联邦机构固定图库。 / U.S. Department of Justice headquarters. GSM federal asset library.
