Banking

Swiss bank UBS AG and Netherlands-based global banking group ABN AMRO said Thursday they have entered into an agreement under which ABN AMRO will sell its global futures and options business to UBS for $386 million in cash plus net tangible assets. The companies said closing is expected towards the end of the third quarter of 2006.

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.

Banking on wholesale natural gas prices to be lower in the upcoming winter heating season, Avista Corp.’s utilities last week asked Idaho regulators to decrease natural gas rates for its 59,000 customers in the state by an average of 15.5%, effective Nov. 1. It would be the first decrease for Avista gas utility customers in the state since 1997, following six rate increases that collectively more than doubled the average bill for residential customers over the period.

Banking on a growing customer base in the upper Midwest,Milwaukee-based Wisconsin Energy Corp. this week unveiled a broad10-year, $6 billion manifesto to construct new power generationunits, refurbish or replace old facilities, improve itsdistribution system, cut its quarterly common stock dividend by50%, and double its share repurchase program.

Williston Basin Interstate Pipeline Co. is in the midst ofupgrading firm transportation capacity on its system inanticipation of supplying cheaper Powder River Basin gas toshippers on Northern Border Pipeline, who it believes will bedeprived of economical Canadian gas supplies when Alliance Pipelinegoes into service in October.

Williston Basin Interstate Pipeline Co. is in the midst ofboosting firm transportation capacity on its system in anticipationof supplying cheaper Powder River Basin gas to shippers on NorthernBorder Pipeline, who it believes will be deprived of economicalCanadian gas supplies when Alliance Pipeline goes into servicelater this year.

Northwest continued to bar any on-system balancing or bankingMonday, saying its operational flexibility was “severely limited”by storage accounts being almost full.

Citing high linepack and storage limitations, Northwest said itis not allowing any on-system balancing or banking through the restof September. Both the Clay Basin and Jackson Prairie storagefacilities are nearly full even though the injection seasondeadline for 100% fills is Sept. 30, Northwest said. In addition,mainline capacity is “very limited” in accepting payback volumesdirectly to linepack, the pipeline added.

Sempra Energy is banking on a belief in the traditionalregulated pipes and wires business but with a couple of new twists.The holding company for San Diego Gas &amp Electric and SouthernCalifornia Gas is literally breaking new ground in North America,while buying into established utilities as far south as theSouthern Cone of South America.