Ebasco Services

Ebasco Services

Company type	Private
Industry	Energy infrastructure, engineering, construction
Predecessor	Electric Bond and Share Company
Founded	1905
Founder	General Electric
Defunct	1993
Fate	Acquired by Raytheon in 1993; integrated into United Engineers and Constructors
Headquarters	New York City , United States
Products	Design and construction of hydroelectric plants, fossil fuel power stations, nuclear power facilities; engineering consulting; construction management; environmental engineering; risk management

Ebasco Services was an American firm specializing in the design and construction of energy infrastructure, with a particular emphasis on nuclear power facilities.

History

Originating from the Electric Bond and Share Company, which functioned as a holding entity for electric utility securities, Ebasco was established by General Electric in 1905 and headquartered at 2 Rector Street, New York City. Following the enactment of the Public Utility Holding Company Act of 1935, Electric Bond and Share reorganized into EBASCO Services, shifting its focus toward engineering consulting and construction services.

Between 1936 and 1961, the Securities and Exchange Commission supervised the dismantling or divestiture of EBASCo's holding companies, excluding American & Foreign Power Co. By 1986, Ebasco reported having constructed approximately 220 hydroelectric plants, 700 fossil fuel power stations, and 35 nuclear power facilities across the globe.

Documented Acquisition History

From 1905 to 1937, intermediate holding company subsidiaries encompassed:

• American Gas & Electric Company
• American Power & Light Company
• Electric Power & Light Corporation
• National Power & Light Company
• United Gas Corporation
• American & Foreign Power Company

In 1937, the SEC mandated the dissolution of these holdings except for American & Foreign Power Co.

In 1969, Boise Cascade acquired Ebasco and sought to divest international assets such as the Cuba Electric Company. Halliburton purchased Ebasco in 1973 but encountered a lawsuit under the Clayton Act in U.S. District Court aiming to reverse this transaction. Lone Star Gas acquired Ebasco in 1976 and rebranded it as Ensearch.

By the 1980s, EBASCO consisted of several divisions: Ebasco Engineering (providing design and architectural/engineering services), Ebasco Environmental (specializing in engineering and scientific work), EBASCO Constructors (focused on construction management), and Ebasco Risk Managers (ERMCI), which later became INDECS. The environmental division was subsequently sold to Enserch Environmental and then to Foster Wheeler Environmental.

Ebasco (EBS) was included in the Dow Jones Utility Average from 1938 until 1947.

The company played a central role in coordinating the design of numerous nuclear power plants worldwide, notably including units 1, 2, and 6 of Fukushima Daiichi.

In 1993, EBASCO Engineering and Constructors were acquired by Raytheon and integrated into United Engineers and Constructors. After Washington Group International acquired Morrison-Knudsen Corp., it took over Raytheon’s nuclear business in 2000.

During the September 11 attacks in 2001, Raytheon’s office located on the South Tower’s 91st floor was destroyed when the building collapsed.

Throughout its operational history, Ebasco issued insurance policies to utility companies covering various risks, including asbestos-related liabilities that later resulted in extensive legal challenges.

Whistleblowing case

Ronald J. Goldstein, a supervisor at EBASCO who served as a principal contractor for Houston Lighting and Power’s South Texas Nuclear Generating Station, became a notable nuclear whistleblower by raising safety concerns in 1985 through SAFETEAM, an internal compliance program. He reported violations of safety protocols and quality control deficiencies that jeopardized plant safety.

Although SAFETEAM was presented as an independent mechanism for reporting safety issues, employees were not made aware that submissions lacked legal protections. After Goldstein filed his complaint, he was terminated and subsequently pursued legal action under federal nuclear whistleblower statutes.

The U.S. Department of Labor ruled that Goldstein’s reports were protected under law and that his dismissal was unlawful; this ruling was affirmed by Labor Secretary Lynn Martin. However, the Fifth Circuit Court of Appeals reversed this decision, determining that private reporting programs did not confer whistleblower protections. In response, Congress amended federal nuclear whistleblower legislation to safeguard internal reporting channels and prohibit retaliatory actions against employees.