SDG&E; Move Clouds Company’s Future : Energy Factors Getting Acquisition Bids

Energy Factors, which faces an uncertain future given electric rate changes recently proposed by San Diego Gas & Electric, has drawn acquisition bids from “several” firms, the company said Thursday.

Energy Factors stock stopped trading for about two hours on Thursday following a flurry of “unusual market activity,” according to Energy Factors Vice President Rick Kay. The stock jumped $1.25 per share on Wednesday and another $1.25 on Thursday, closing at $15 after trading resumed over the counter.

The San Diego-based company is talking to “several companies with respect to a possible acquisition of all or part of Energy Factors or a capital infusion through a private placement of Energy Factors’ securities.”

“The discussions are ongoing right now,” Kay said Thursday afternoon.

However, “no agreement has been reached and . . . there can be no assurance that any transaction will be consummated,” according to a statement issued when trading was stopped.

Energy Factors, an “energy services” company, reported $5.5 million in net income and $32.7 million in revenues during 1986. It operates co-generation and small power production plants around the country.

Energy Factors’ future became clouded earlier this month when SDG&E; unveiled a proposed electric rate design that could curtail the market for co-generation plants in San Diego.

Co-generation plants, which generate electricity, also harness waste heat that is used to power machines or air-conditioning systems. The systems are popular with large industrial and commercial electrical customers in such areas as San Diego which have high electric rates,.

Critics contend that SDG&E;’s rate schedule would kill the co-generation industry in San Diego. They also fear that other utilities would adopt similar rate designs.