Utilities face limits on how much and how quickly they can grow the rate base. New products and services typically do not contribute enough to move the needle.
Utilities can pursue mega-mergers, but recent history suggests that the regulatory approval process bogs down these deals and strips away value. Oliver Wyman Partner Gerry Yurkevicz wrote this article for American Gas, a publication of the American Gas Association.
Small M&A Advantages
Utilities and fund managers should view small acquisitions as big opportunities.