The performance of Dynegy’s gas liquids business during thesecond quarter indicates the market is finally making aturn-around. Operating income from the liquids division grew 41% to$54.9 million, Dynegy reported. Its power marketing and generationdivision, including operating margin and equity earnings from jointventure power projects, also showed continued improvement with 28%growth in operating income to $56.8 million. But gas marketingsuffered a 31% decline in operating income to $21.8 millionprimarily because of “weak market conditions” in Europe, thecompany said. Dynegy posted a 19% increase in net income during thesecond quarter to $28 million compared with $23.4 million in 2Q98.It sold a total of 9.2 Bcf/d of gas (6.1 Bcf/d domestically), upfrom 8.2 Bcf/d in 2Q98, and sold 17.4 million MWh of power, down40% from the 28.9 million MWh sold in 2Q98. Dynegy also showed ahigh retail marketing loss of $2.4 million compared with $600,000in 2Q98 because of the expansion of its SouthStar retail marketingalliance with AGL Resources and Piedmont Natural Gas in Georgia.SouthStar markets gas under the name Georgia Natural Gas and hasbuilt one of the largest market shares in Georgia. Dynegyattributed the mounting losses to increased advertising inpreparation for the Oct. 1 deadline for retail customers to switchto buying gas from marketers.

Columbia Energy yesterday gained the support of Ohio state Rep.David Goodman (R-Bexley) in its battle against the $5.7 billionhostile takeover bid of Merrillville, IN-based NiSource. NiSourcecurrently is offering Columbia shareholders $68/share. It’s tenderoffer is scheduled to close Aug. 6. Goodman, warned regulators andlegislators a takeover by NiSource could lead to “the closing ofthe Columbus headquarters for Columbia Gas of Ohio, hundreds oflost jobs in Columbus and other Ohio cities, higher prices for Ohioconsumers, and diminished ability of Columbia Gas to provide areliable source of natural gas for millions of Ohioans.” Goodmanalso noted that there have been concerns on Wall Street over the $6billion loan NiSource would require to complete the purchase. “I’mworried that the deal could weaken the company’s ability to serveOhio’s energy needs – and that Ohio consumers and Ohio jobs couldbe losers in the long run,” he said. Goodman urged the PublicUtility Commission of Ohio, the Ohio Consumers Counsel, the OhioAttorney General’s office, the Ohio General Assembly and otherstate agencies to “carefully and thoroughly investigate theproposed merger to ensure that Ohio consumers are not harmed, Ohiojobs are not threatened and Ohio laws are not violated,” by theproposed hostile purchase.

ENERGYguide.com has expanded its national retail energyclearinghouse to include gas offers, allowing consumers to compareand select energy providers. Sponsors claim the one-stop consumerinformation and e-commerce site for energy and energy-relatedproducts, is the only site to offer online shopping for bothelectricity and gas on a national basis. By entering their ZIP codeand details about energy usage, consumers in deregulated states canreceive a detailed list of all gas and/or electric offers availablein their area from registered suppliers. The consumer’s energyinformation allows ENERGYguide.com to perform a personalized energyanalysis and locate the best offers. ENERGYguide.com offersinformation on suppliers and offers in Georgia, Maryland, Michigan,New York, and Ohio. New Jersey and Pennsylvania offers will appearas soon as information is available. Electricity offers areavailable in all states that have rolled out deregulation,including California, Pennsylvania, Massachusetts, New York, andRhode Island.

Duke Energy North America (DENA), the developer of NorthAmerican power projects for Duke Energy, got a stronger foothold inSouthwest power generation by buying a 50% stake in a gas-firedpower plant being developed by PP&L Global Inc. in Kingman, AZ.The plant will have nominal baseload capacity of 500 MW and peakcapacity of 600 MW and will serve southwestern markets. Pendingfinal approvals, construction will begin in September forcommercial operations in July 2001.

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