CMS Marketing, Services and Trading (MST), shadowed by federal investigations into sham energy trading transactions last year, has completed the sale of its wholesale natural gas trading book to Sempra Energy Trading for $18 million.

The sale to the Sempra Energy subsidiary was first announced last month (see Daily GPI, Dec. 31, 2002). It basically removes CMS from the once lucrative wholesale gas trading arena, but will give parent CMS Energy money to accelerate its debt reduction program. CMS MST also has indicated it wants to sell its wholesale electricity book.

David B. Geyer, CEO of CMS MST, said that the sale will not affect gas service to its 15,000 retail customers in Michigan. It is registered with the Michigan Public Service Commission as a retail gas and power supplier. Now headquartered in Houston, CMS MST is moving its offices to Dearborn, where CMS Energy is headquartered.

CMS joins other former energy merchants in exiting the business, including Dynegy Inc., Allegheny Energy Inc., Aquila Inc. and El Paso Inc.

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