Bankrupt

Bankrupt Mirant Corp. said Monday that it is taking bids on its Mirant Canada Energy Marketing operations, which include all of its remaining Canadian natural gas marketing and transportation contracts and related assets. The sale of these assets would mean the company’s exit from the Canadian energy business.

FirstEnergy Corp. on Thursday said that it has reached an agreement with bankrupt NRG Energy Inc. related to a never-completed sale of four FirstEnergy power plants to NRG Energy. Under the agreement, FirstEnergy’s claim against NRG Energy would be allowed in the amount of $396 million, subject to U.S. Bankruptcy Court approval.

Bankrupt Mirant Corp. reported a massive $2.2 billion net loss for the second quarter of 2003, or a loss of $5.44 per diluted share, after taking a $2.1 billion pre-tax, non-cash charge related to the total impairment of its North American goodwill due to declining power plant values.

Tripped up by its latest bankrupt unit in the merchant energy sector, San Francisco-based PG&E Corp. announced Wednesday it will ask the federal Securities and Exchange Commission for an extension of its second quarter report while financial statements are still being finalized. PG&E also said it would release is second quarter results next week (Aug. 19) with a conference call the financial community, with or without the unit’s results, which are no longer consolidated with the parent company. PG&E said both the holding company and its other Chapter 11-bound unit, the Pacific Gas and Electric Co. utility, will file for the SEC extension. They seek added time to let PG&E National Energy Group, which filed for Chapter 11 bankruptcy July 8, complete the preparation of its second quarter financial statements. “NEG is currently reviewing its methods for netting certain revenues and expenses, primarily related to hedging activities,” PG&E said in its announcement. “The outcome of this review is not expected to materially affect PG&E Corp.’s operating income, net income, balance sheet or cash flow.” PG&E NEG concurrently filed a proposed reorganization plan last month as part of its Chapter 11 filing. When implemented, the plan would eliminate PG&E Corp.’s equity in the merchant unit. “As the result of the Chapter 11 filing and the resignation of PG&E Corp. representatives from NEG’s board of directors, PG&E Corp. no longer retains significant influence over the evolving operations of NEG, including SEC filings,” the parent company said.

A bankruptcy court judge last week approved a motion filed by bankrupt NRG Power Marketing allowing it to reject a power contract previously entered into with Edison Mission Marketing & Trading Inc., an indirect subsidiary of Edison International.

ISO New England last Tuesday warned FERC that a loss of power supplied by various power plants owned by bankrupt NRG Power Marketing Inc. in the region “could result in blackouts over a considerable area of the New England bulk power grid, including areas outside the immediate region where the assets are located.”

Bankrupt Texas Commercial Energy (TCE) has filed a federal antitrust lawsuit against various electric companies claiming that they violated federal and state law by illegally manipulating the Texas electric market and fraudulently inflating prices.

Following last week’s payment of $75 million in local property taxes, bankrupt Pacific Gas and Electric Co. announced Monday that it had paid $113 million in 2002 franchise fees to 290 cities and counties in which it operates over the northern two-thirds of California.

Bankrupt Enron Corp. has had 25 parties showing initial interest in Portland General Electric (PGE), the Oregon-based utility that the Houston energy firm purchased in 1998, and the company expects to make a decision at year-end or early in January on whether to sell or keep PGE as part of a newly created energy company after Chapter 11 federal bankruptcy proceedings, according to a presentation Wednesday to the Oregon Public Utilities Commission (PUC).