Approve

U.S. Sen. Charles E. Schumer (D-NY) urged the New York PublicService Commission (PSC) last week to quickly approve thecompromise route for the 442-mile Millennium Pipeline, which hasbeen languishing in a regulatory quagmire since December 1997. TheFederal Energy Regulatory Commission issued a supplemental draftenvironmental impact statement last month approving the new routefor the project, which would bring 715 MMcf/d of gas to New YorkCity from connections with the Canadian pipeline grid under LakeErie.

Niagara Mohawk (NIMO) shareholders last week approved an $8.9billion merger with Britain’s National Grid Group plc a couple daysfollowing a major rate reduction deal that was offered to New Yorkratepayers and regulators in exchange for approval of the marriage.

Virginia Gas Co.’s shareholders last week approved a merger planwhich would allow the company to fold under Bedminster, NJ-basedNUI Corp. as a wholly-owned subsidiary. Under the terms of themerger, NUI Corp. will acquire all of Virginia Gas’ shares ofcommon stock for $4.00 per share in NUI common stock. The exchangeratio will be established at a time more near the merger’scompletion. Based on Virginia Gas’ outstanding shares, thetransaction value of the company’s equity is placed at $22 million.

California regulators Thursday conditionally approved a $3.5million settlement penalizing Southern California Gas for itshandling of the proposed sale and use of eminent domain powersrelated to one of its small, discontinued Los Angeles-areaunderground storage fields in the LA suburb of Montebello, CA. Thelarge utility company admitted no wrongdoing and is avoiding what,by its own admission, could be the substantially larger costs ofprotracted litigation.

An Administrative Law Judge (ALJ) with the California PublicUtilities Commission (CPUC) has recommended the Commission approvean emergency motion by Southern California Edison to freeze theformula for avoided cost payments to qualifying facilities at theAugust rate of $4.5133/MMBtu, rather than post the September rateof $6.4567.

CP&L Energy’s shareholders yesterday overwhelmingly approvedthe company’s pending acquisition of Florida Progress Corp., which,when completed, will create one of the 10 largest U.S. energycompanies with a generating capacity of more than 19,000 MW andmore than 2.8 million electric and natural gas customers in theSoutheast.

Shareholders of Anadarko Petroleum and Union Pacific Resourcesvoted to approve a $5.4 billion merger of the two companiesyesterday. The merger calls for UPR shareholders to receive 0.455shares of Anadarko common stock for each of their UPR shares.Anadarko shareholders also voted to increase the size of the company’sboard to 15 members from nine. The combined company will be namedAnadarko Petroleum (see Daily GPI, April4).

Shareholders of NiSource Inc. and Columbia Energy Groupoverwhelmingly approved the merger of the two companies, whichwould create a mega energy powerhouse serving nine states and morethan 4 million customers, stretching from Chicago in the west toNew England in the east and south to the Gulf of Mexico.

Rhode Island’s Providence Energy Corp. shareholders votedoverwhelmingly last week to approve a proposed merger with Austin’sSouthern Union Co. First announced last November, the proposedmerger is on track for regulatory approval by late this summer.ProvEnergy shareholders would be paid $42.50 per share with themerger.