Overview
Shaun Boedicker, Jennifer Quinn-Barabanov and Chris Zentz authored an article that appeared in Financier Worldwide titled: "Utilities and Pipelines – Diversification into Non-Traditional Businesses." The article discusses how electric utilities and pipeline companies are diversifying their business models due to environmental, social, and governance (ESG) frameworks, state clean energy mandates, and demands from large customers for non-emitting energy sources. Common diversification strategies include forming unregulated affiliates for renewable energy, investing in new technologies, and entering unique contracts. This diversification presents regulatory, transactional, and litigation challenges. Companies face increased regulatory scrutiny, complex transactional considerations, and potential litigation risks. The evolving regulatory frameworks, market rules, and the need for sophisticated deal-making are crucial aspects impacting the success of these diversification efforts.
