Approve

Shareholders of PanCanadian Energy and AEC Corp. last week approved PanCanadian’s $6.5 billion stock purchase (excluding debt assumption) of AEC and the renaming of PanCanadian to EnCana Corp. The Alberta Court of Queen’s Bench put the final seal on the transaction on Friday. The merger forms the largest independent producer in terms of reserves and production with an enterprise value (including debt) of $18 billion (C$30 billion).

The refusal of the Democrat-controlled Senate Judiciary Committee to approve the nomination of Judge Charles Pickering to the federal bench is expected to tie up nominations in the upper chamber for the foreseeable future, including the nomination of Joseph T. Kelliher to fill the vacancy on the Federal Energy Regulatory Commission.

The refusal of the Democrat-controlled Senate Judiciary Committee to approve the nomination of Judge Charles Pickering to the federal bench last week is expected to tie up future nominations in the upper chamber for the foreseeable future, including the nomination of Joseph T. Kelliher to fill the vacancy on the Federal Energy Regulatory Commission.

The Federal Energy Regulatory Commission Wednesday voted to approve the proposed North Baja Pipeline, which will deliver 500 MMcf/d of natural gas from a connection with El Paso Natural Gas near Ehrenberg, AZ, to gas distribution systems and new power plants in northern Mexico and Southern California.

Westcoast Energy Inc. announced Thursday that its securityholders, at a special meeting in Vancouver, overwhelmingly approved its acquisition by Duke Energy. Over 96% of the votes cast were in favor of Duke’s US$8.5 billion bid for the major Canadian pipeline company. The purchase price includes assumption of about $4 billion in debt.

The Senate is expected to approve a $60 billion transportation spending bill this week that calls for record funding for pipeline safety and inspection programs.

The New York Independent System Operator (NYISO) is asking FERC to approve a market design in New York electricity markets based on an unforced capacity (UCAP) methodology, which it says will offer an incentive for generators to improve the efficiency of their generating assets. More broadly, the ISO expects the UCAP proposal to bring it one step closer to the development of a common installed capability (ICAP) market design among the various Northeastern ISOs.

The Public Service Commission of Wisconsin (PSCW) voted to approve construction of the 35-mile Wisconsin Gas Lateral earlier this week. The proposed lateral line will connect Wisconsin Gas’ existing facilities to the Guardian Pipeline, which will bring natural gas from the Chicago market hub to southeastern Wisconsin. In today’s discussion at the Commission’s meeting, the commissioners chose the Wisconsin Gas recommended route that is 78% co-located with the Union Pacific Railroad and other existing utility infrastructure. This route will connect the lateral from the Guardian terminus near the Town of Ixonia in Jefferson County to existing distribution facilities in Germantown and Brookfield. In addition, the commission also voted to find that Wisconsin Gas’ proposed mitigation plans would adequately mitigate potential impacts to the environment. The Guardian Pipeline will provide pipeline-on-pipeline competition to the Wisconsin market for the first time. The market has long been dominated by ANR Pipeline (see Daily GPI, March 15). Wisconsin Gas said construction on the lateral is scheduled to begin in Spring 2002, with commercial operation beginning in the fall of the same year. This approval will be followed by a written order expected within a month.

Canada’s National Energy Board has received an application from Maritimes & Northeast Pipeline Management Ltd. to approve final tolls from Test Period 2001, which runs October 2000 through Dec. 31, 2001, and for Test Period 2002, which runs from Jan. 1, 2002 through Dec. 31, 2002. M&NP has been operating on interim tolls approved by the NEB since Oct. 1, 2000.