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Merger represents evolution in ownership of power companies

On Behalf of | May 18, 2020 | Mergers & Acquisitions

Residents and businesses across Florida rely on local power companies to keep their lights on, literally. The largest such company in the state, Florida Power and Light, currently serves an estimated five million customers. A handful of other companies serve remaining customers. In just a bit over a year and a half, Florida Power and Light will combine operations in a merger with one of these other companies.

Parent company brings two into one

As explained by the Pensacola New Journal, a company called Next Era has owned Florida Power and Light for some time and eventually acquired Gulf Power last year but kept the two companies separate. Now, however, they plan to merge these two entities into a single power provider. The merger will be effective at the start of the 2022 calendar year.

Projected benefits to customers

Together, the newly merged business will serve close to 5.5 million customers spanning from Pensacola to Miami. A statement released by Next Era indicated that by combining forces, customers of the new company are projected to enjoy financial benefits. The company is planning to release a new set of utility rates in 2022 as well, although no details about that rate set have yet been disclosed.

Alternative energy source expansion

The Palm Beach Post reports that Next Era is clearly focusing on expanding its move into solar energy. It has been adding more panels and plans to have up to 30 million solar panels in the state by 2030. This move includes solar panels installed in the current Gulf Power service area.