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Mergers and acquisitions
Affiliate transactions
Regulated utilities’ transactions with their unregulated affiliates may raise
concerns related to affiliate abuse, self-dealing, and cross-subsidization. Apart from
harming captive ratepayers, these practices can impose significant economic damages on
independent competitors and prevent the emergence of truly competitive markets. These
types of abuses may occur through market-based and cost-based transactions, as well as
in competitive solicitations. We thoroughly examine industry transactions to determine
whether proposed mergers and acquisitions will create affiliate transactions that can
cause economic harm to consumers and competitors.
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