Adopts

To discourage a hostile takeover, Houston Exploration Co.’s board of directors on Thursday adopted a shareholder rights plan that may be exercised if any group — with the exception of 24% shareholder KeySpan Corp. — acquires or announces a tender offer for 10% or more of the company’s outstanding common stock.

The Public Utilities Commission of Ohio (PUCO) said Thursday that it modified and then adopted a stipulation and recommendation from Columbia Gas of Ohio and a collaborative group of parties that relates to Columbia’s rate, natural gas choice program, gas cost recovery, and long-term forecast report, among other things.

The California Public Utilities Commission (CPUC) last week unanimously adopted a framework under which the state’s three investor-owned utilities (IOUs) will plan for and obtain the energy resources and demand-side investments necessary to ensure their customers receive reliable service at low and stable prices.

By a 3-2 vote, the Florida Public Service Commission (PSC) has adopted a “code of conduct” for natural gas utilities, prohibiting them from giving marketing affiliates preference over non-affiliated marketers in issues concerning transportation or curtailment authority. Among other things, the code does not allow the utilities to release confidential customer information without prior authorization.

The Federal Energy Regulatory Commission last week issued a final rule that adopts new consensus business standards for interstate natural gas pipelines in a number of areas — capacity-release bidding and scheduling, title transfer tracking at pooling points, imbalance netting and trading, and electronic transactions over the Internet.

Under Canaan’s shareholder rights plan, preferred stock purchase rights will be distributed to shareholders of record as of the close of business on March 25. The shareholder rights plan actually was under consideration before the tender offer by Chesapeake. The rights plan is designed to assure that Canaan’s shareholders receive fair and equal treatment in the event of any proposed takeover of the company and to deter potential abusive tactics to gain control of the company without paying a fair price to shareholders. The plan won’t prevent a takeover, but should encourage anyone seeking to acquire the company to negotiate with the board. The rights will be exercisable only if a person or group acquires 15% or more of the company’s common stock.

The Senate overwhelmingly adopted an amendment to the Senate energy bill Wednesday that calls for a proposed North Slope natural gas pipeline to be built along the Alaska Highway, a route that had wide bipartisan support in the upper chamber.

The Illinois Commerce Commission (ICC) has adopted emergency rules that would require the state’s licensed marketers to meet more stringent financial qualifications. The rules, approved this week by the Commission and submitted to the Illinois secretary of state, take effect March 1, when the systemwide customer choice program by Nicor Gas is scheduled to begin.

In what at first glance appears to be part of the continuing fallout from the rapid downfall and bankruptcy of Enron Corp., the Securities and Exchange Commission (SEC) last week amended its rules and forms to require more transparent company disclosures of employee stock option plans (ESOP) and other equity compensation arrangements.