21.   The Sao Paulo state assembly approved a bill that will let the three utilities be split into smaller units.

22.   The three utilities are publicly traded but are controlled by the government of the state of Sao Paulo.

23.   The two utilities are among the oldest in the nation.

24.   The two utilities had talks last year about a merger.

25.   The two utilities are currently buying more expensive electricity from other power plants in order to meet their sales commitments, at a heavy loss for them.

26.   The two utilities expect the merger to create a stronger company that would compete more effectively in the electric utility industry.

27.   The two utilities have warned that they could soon file for bankruptcy protection if the situation does not improve.

28.   The two utilities will continue to charge separate rates and be regulated separately, one person close to the talks said.

29.   The utility battle has triggered a highly visible advertising duel involving the three utilities.

30.   The winner in the fight between the two utilities will serve the lucrative Philadelphia market as it is opened to competition over the next two to three years.