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Although the merger of Exxon and Mobil has raised the eyebrowsof at least two states, the Federal Trade Commission (FTC) isexpected to vote today to approve the $81 billion deal to createone of the world’s largest energy companies. The deal includes aproposal to sell about 2,400 gas stations nationwide, and at leastConnecticut and New Hampshire are concerned. Although ConnecticutAttorney General Richard Blumenthal opposes the deal, he told theAssociated Press it is unlikely a single state could block themerger and it also is unlikely a coalition of states will form tochallenge the deal.

The $6.4 billion merger of Dominion Resources and ConsolidatedNatural Gas (CNG) picked up approvals from the Federal TradeCommission (FTC) and the Federal Energy Regulatory Commission(FERC) last week, but both agencies included conditions to protectcustomers in Virginia.

FERC last week approved the proposed merger of Illinova Corp.and Dynegy Inc., saying the $2 billion deal posed no competitiveconcerns. It noted “there is insufficient ‘overlap’ betweenrelevant upstream delivered gas and downstream electricitymarkets…to raise significant competitive concerns.” Also, thetransaction “does not enhance the merged company’s incentive toraise its rivals’ costs because it has a relatively small share ofthe relevant downstream electricity markets.”

Calgary-based PanCanadian Petroleum Ltd. announced a $1.2billion capital spending program for 2000, an increase over 1999.The company plans to spend $940 million primarily in theexploration and development of PanCanadian’s western Canadaproperties, with a significant portion devoted to growing gasassets, including off Nova Scotia, in the Gulf of Mexico andoverseas.

In rejecting NiSource’s revised tender offer of $6.1 billion ($74/share) last week, Columbia Energy Group’s board announced that it authorized management to begin considering all options, including a sale of all or part of the company to a third party, possibly even NiSource.

In rejecting NiSource’s revised tender offer of $6.1 billion($74/share) over the weekend, Columbia Energy Group’s boardannounced that it authorized management to begin considering alloptions, including a sale of all or part of the company to a thirdparty, possibly even NiSource.

El Paso Energy Corp. and Sonat Inc. completed their $6 billionmerger yesterday. As NGI reported earlier, the two companies jumpedthe final hurdle when El Paso agreed to the FTC’s terms to divestits 100% ownership in East Tennessee Natural Gas Co., Sonat’s 100%ownership of Sea Robin Pipeline Co., and Sonat’s one-third interestin Destin Pipeline Co., L.L.C. following the merger (see Daily GPI,Oct. 25). The transaction creates a transmission system comprisingover 40,000 miles, which El Paso said is the largest system inNorth America both in terms of throughput and miles of pipeline.The new El Paso’s pipeline systems will transport 12.4 Bcf/d-fullyone quarter of the natural gas volumes transported in the UnitedStates. The combined company will be headquartered in Houston.Sonat’s headquarters will remain in Birmingham, AL, and El PasoNatural Gas Co. will remain in El Paso, TX. William Wise,previously CEO of El Paso Energy, will retain his position in thenew company. Ronald Kuehn, who has been CEO of Sonat, is now thechairman of the board for the combined company until Dec. 31, 2000.

Despite recently proposing a massive $15 billion merger ofequals between Commonwealth Edison parent Unicom and Peco Energy,Unicom CEO John W. Rowe still has an appetite for growth. Hebelieves the combined company would need to get bigger in certainareas to remain competitive.

After years of debate and hearings on whether and how torestructure the $200 billion electricity industry, the consensusonce again appears to be – not this year.