Approves

FERC last Wednesday approved a combined settlement between El Paso Electric Co., the California attorney general, the California Electricity Oversight Board (CEOB) and FERC trial staff aimed at resolving allegations that the utility colluded with Enron during California’s energy crisis to manipulate the wholesale market and artificially inflate prices.

The Federal Trade Commission (FTC) late last week conditionally approved Southern Union Co.’s $1.8 billion purchase of the Panhandle pipeline from CMS Energy Corp, noting that following the conditions of the deal would preserve competition in the market for the delivery of natural gas to the Kansas City area. The parties anticipate closing this month.

The Federal Trade Commission (FTC) on Thursday conditionally approved Southern Union Co.’s $1.8 billion purchase of the Panhandle pipeline from CMS Energy Corp, noting that following the conditions of the deal would preserve competition in the market for the delivery of natural gas to the Kansas City area.

FERC last week conditionally approved a proposal by the New York Independent System Operator (NYISO) to implement an installed capacity (ICAP) demand curve in the grid operator’s ICAP market. The Commission said the proposal will provide better price signals to investors for the construction of new generation and encourage the formation of long-term, bilateral transactions, among other things.

In an effort for more integrated energy planning among the state’s three key agencies, the California Energy Commission Wednesday approved a draft “energy action plan” that has been cobbled together jointly for presentation later this year to the governor and state legislature.

As part of American Electric Power’s (AEP) ongoing efforts to conserve cash, slash debt and improve its balance sheet, the electric utility last Wednesday said that its board of directors approved a 42% reduction in AEP’s quarterly dividend from 60 cents per share to 35 cents per share.

The Commodity Futures Trading Commission (CFTC) has approved plans by the New York Mercantile Exchange Inc. (Nymex) to offer three financially settled PJM electricity futures contracts, Nymex reported last Tuesday. The contracts are expected to be available in the first part of 2003.

FERC Administrative Law Judge (ALJ) Peter Young last week approved a bid by California to have Michael Driscoll, a former analyst with Enron Power Marketing Inc. (EPMI), subpoenaed as part of an ongoing proceeding at the agency examining possible refunds due to the state from power suppliers for alleged manipulation of western energy markets in 2000-2001.

Over the objections of its former president, the California Public Utilities Commission Thursday approved on a 4-1 vote a $6.7 million performance-based ratemaking (PBR) award for San Diego Gas and Electric Co. under its incentive mechanism for buying natural gas supplies.