After a slowdown in M&A activity in 2002-03, signs are indicating that investment in utility mergers and acquisitions are picking up and that assets will be moved around. 

SummitPoint President Michael Sarlitto told Energybiz Magazine that one factor adding to the increase in utility related M&A activity is that several private equity players have also entered the fray, scooping up assets to strengthen their operation and increase the value of their investment.

In the energy sector, private capital, hedge funds, buyout funds, and high-yield bond funds started providing capital to buy selected assets or energy companies, often at distressed prices.  Also, while remaining rather low key, several financial services companies, such as Goldman Sachs and Morgan Stanley have been buying natural gas companies.