Allegedly

Pepco Energy Services Inc. has asked FERC to conduct an investigation into the “serious problems” that allegedly occurred during a November capacity auction by Columbia Gas Transmission, which it said ultimately led to the rejection of valid bids made by Pepco and capacity being awarded to another shipper.

Pepco Energy Services Inc. has called on FERC to conduct an investigation into the “serious problems” that allegedly occurred during a November capacity auction by Columbia Gas Transmission, which it said ultimately led to the rejection of valid bids made by Pepco and capacity being awarded to another shipper.

Whether Enron Corp. founder Kenneth Lay does any jail time or pays any fines for allegedly violating banking rules now rests in the hands of U.S. District Judge Sim Lake. The case against Lay, who was charged with four counts of personal bank fraud, was completed on Tuesday.

National Fuel Gas Supply Corp. (NFG) allegedly overcharged transportation and storage customers about 17.36 Bcf (or 17.88 MMDth) in fuel costs over the five years from 2000 through 2004 and still continues overcharging customers today, according to a complaint and motion for summary disposition filed at FERC by the Public Service Commission of New York, the Pennsylvania Public Utility Commission and the Pennsylvania Office of Consumer Advocate. The Williamsville, NY-based utility vowed to fight the complaint, saying that its fuel percentages have been in place and in public view for more than a decade.

El Paso Corp. has agreed to pay $30 million to settle claims that it allegedly underpaid royalties for production from natural gas wells in Oklahoma, Texas and New Mexico, according to the company’s annual 10-K report that was filed with the Securities and Exchange Commission Tuesday.

A Colorado-based oil and natural gas producer has accused Columbia Gas Transmission of using an allegedly unauthorized gas quality specification to refuse its request for an interconnect to the pipeline.

Detailed and recorded trader tapes show that a handful of Texas utility companies, led by TXU Corp., are gaming the state’s electricity market, using the same types of schemes exposed in the California and Enron crises to reap windfall profits at the expense of Texas consumers and smaller competitors, bankrupt Texas Commercial Energy (TCE) alleged last week.

Andrew Fastow, the ex-Enron Corp. CFO who allegedly manipulated the company’s books that eventually led to bankruptcy, will be tried separately beginning April 20, 2004 under an order by Houston-based U.S. District Judge Kenneth Hoyt.

Facing potential civil action by the Securities and Exchange Commission (SEC) for allegedly improper accounting practices, Nicor Energy continued to sell off its customer contracts last week. The company, which is a partnership between Nicor Inc and Dynegy sold energy supply contracts covering about 8,000 commercial and industrial gas and electric customers in three midwestern states to Constellation Energy Group for an undisclosed sum.