This Is Not An Investment Site -- August 24, 2015

The AP is reporting that Southern is buying AGL Resources:

Southern Co. is buying AGL Resources Inc. for approximately $7.93 billion, which would create the second-biggest utility company in the U.S. by customer base.

The combined business will include 11 regulated electric and natural gas distribution companies, serving approximately 9 million customers in nine states. Customers will continue to be served by their current gas and electric utility companies.

Atlanta-based Southern will pay $66 in cash for each AGL share, a 38 percent premium to the company's Friday closing price of $47.86.

Southern and AGL put the deal's enterprise value at about $12 billion. The enterprise value figure typically includes assumed debt.

Both Southern and AGL are based in Atlanta; AGL will become a subsidiary of Southern.

Utilities by customer base, 2012.
By market cap, 2014.
History and full list here.

My hunch: the number one concern for utilities -- net metering -- and the utilities will win on this one.

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California Says "No" To Ultra-Rich For Tesla Tax Breaks

The "Simply" Rich Will Still Get The Tax Breaks

The Los Angeles Times is reporting:

Hundreds of Californians with household incomes of $500,000 or more have collected state subsidies for buying electric and hybrid cars under a program that is criticized as a taxpayer handout to the wealthy.

State regulators, in response, are restricting the subsidies to Californians who earn less than $250,000 or couples taking in less than $500,000. But that standard is also under fire from some lawmakers and anti-tax activists, who ask why subsidies worth up to $5,000 are given to people who can already afford the cars.

It's a small nail, a very small nail in Tesla's coffin, but a nail just the same. I assume those folks with incomes over $500,000 bought Tesla's for the "cachet" not for the tax savings. It was their accountants who took advantage of the tax savings. I doubt this will have any real effect on actual sales, but it's a huge PR story.

On the other hand, when a company is "delivering" only a handful of cars, every sales counts, and even the loss of a dozen sales might be felt.

My hunch is the income limit will drop in California; any other states subsidizing Tesla sales will follow suit; and, no new states will offer any rebates to the rich for buying a Tesla.