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Convergence obviously is alive and well in the energy industry, but it’s not exactly what a lot of people seem to think it is, according to Dynegy CEO Chuck Watson. Convergence isn’t just about gas and power coming together. It’s not just marketing gas and power and growing market share.

Convergence obviously is alive and well in the energy industry,but it’s not exactly what a lot of people seem to think, accordingto Dynegy CEO Chuck Watson. Convergence isn’t just about gas andpower coming together. It’s not just marketing gas and power andgrowing market share.

Something good did come out of the power market malfunctions oflast summer, according to Moody’s Investors Service. In a reportreleased yesterday, Moody’s said the experience has triggered a newcommitment to counterparty risk management by energy trading firmsthat will enhance credit quality in the energy sector and inspiregreater confidence in the market.

Small scale power generation revenues are poised for growth,according to a new study by Business Communications Co. Revenueswere estimated at $4.2 billion in 1998 and are expected to grow atan average annual rate of 32.1% to pass $16 billion in 2003.

The Federal Energy Regulatory Commission needs to “do a completeoverhaul of its cost of service ratemaking model,” according toproducer attorney Katherine Edwards, because the rates currently inplace on many pipelines no longer reflect the costs.

Shippers hoping to line up firm capacity to California on ElPaso better be ready to fight for it, according to Jerry Strange,El Paso director of transportation marketing.

Shippers hoping to line up California capacity coming open on ElPaso better be ready to fight for it, according to Jerry Strange,El Paso director of transportation marketing.

Major price spikes could recur in the Midwest power market thissummer, according to a key consulting group. “I would say it’s like50-50 whether we’re going to have very gross spikes there,” saidJudah Rose, vice president of wholesale power for ICF KaiserInternational Inc. “It looks like we may luck out, but it’s stillvery, very dicey” in the Midwest region. A major factor is “no oneknows who’s in charge of reliability in the Midwest,” he toldGasMart/Power ’99 in Dallas. Rose believes the federal governmentneeds to intervene to settle the issue once and for all. “There isnothing more federal than the intersected power grid. The federalgovernment needs.to set up who’s in charge of reliability, figureout what the rules are.”

KN has scheduled an outage on its Pony Express line forTuesday’s gas day, according to Williams Gas Pipeline Central.Williams will not accept nominations at the KN-Glavin interconnectin Franklin County, KS, for that period.