I have freinds who work for EDE too. They went through restructuring a few years ago. There is not a whole lot of fat. I understand about 270 jobs were to be lost to the merger from duplicate jobs, personel, accounting, rates, customer services, etc. The rest are support for production and transmision and distribution. They only have about 150 linemen. I live in this area and fear my service will never be what it has been. I invest in companies I like and support. Deregulation of the phone system has left a nasty taste in my mouth. It looks like something worse is coming to the electric industry.
Haven't heard what will happen yet. The employees that I know are still grinning quite loudly. I would say they have incured some costs in this merger/acquisition but I don't know what the plan is. It seems some of the costs of buying the bonds, etc. could have been spent anyway and are sort of a wash. There has to be some costs that will just have to be swallowed. They still have to go through with their rate hike to keep things above water. I would like to see them open up the stock re-investment program again.
While telco deregulation may seem wild and wooly at times, that is the price and the benefits of a free market. For proof, I only need to point to the internet. In regulated days, you think you could hang on-line, 24 hours a day for 20 bucks a month?? FAT CHANCE.
Furthermore, do NOT assume that electric deregulation is a failure based on California's mess. They NEVER deregulated. They let generation float to wholesale prices while keeping consumer prices fixed. They forced the utes to buy at spot prices by forbidding hedging. It's kinda like being a little bit pregnant.
I couldn't agree more with your post. The interesting thing the PSC approved the merger, but denied UCU's regulatory plan to recover cost of the merger.The head of UCU Rick Green testified before the Missouri PSC if they did not agree to let them have their own regulatory plan then it didn't make sense to go forward with the merger. Now we will see if he is a man of his word. The other rather odd thing is the fact UCU hasn't made any comment about the decision that I have been able to find. Sunday night at midnight either party can walk away with no penalties. Should be an interesting weekend for employees and investors a like. Happy Investing!!!!!