With the political and economic sensitivities that have built up over the past 18 months in the state toward Texas-based energy giants, California officials are expected to put in their own two cents regarding the proposed $23-24 billion buyout of Enron Corp. by Dynegy Corp. The two are among the half-dozen prominent national energy firms selling energy in California that the state’s political leaders have openly criticized as alleged “price gougers” and “market power abusers.”
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Calpine Reiterates 70,000 MW Goal by End of 2005
In an attempt to dissuade anyone from the notion that power markets are going to become over-built any time soon, Calpine Corp. held the second of a series of three conference calls last week with the financial community, reinforcing that it is not backing off its goal of having 70,000 MW of new capacity on line by the end of 2005, and growth in its $1.4 billion natural gas holdings will increase along with the new plants.
Millennium Gets Nod on ConEd Corridor Route
A hotly contested route alternative that calls for theCanada-to-New York Millennium Pipeline to be built within anelectric transmission system’s right-of-way (ROW) in WestchesterCounty, NY, is a “viable option” provided state regulators and thepipeline can work out the construction details, according to asupplemental draft environmental impact statement (DEIS) issued byFERC staff last week.
Industry Briefs
Coral Power LLC will supply the natural gas and collect thepower output of a 900 MW generating station to be built andoperated by Tenaska Alabama II Partners L.P., a limited partnershipcomprised of affiliates of Tenaska Inc. The two companies announcedyesterday they had executed an energy conversion agreement for thefacility to be located near Billingsley, AL. Coral plans to marketthe power throughout the Southeast. It is the second of this typeof agreement between Coral and Tenaska. The first was signed inAugust, 1999 for an 845 MW Tenaska Gateway Generating Station inRusk County, TX. The initial financing process for the project willbegin early next year with construction slated to begin in thesummer of 2001 and be completed for summer 2003.
Industry Brief
Frederickson Power acquired a partially built gas-fired 249 MWelectricity generating facility located in Fredrickson, WA from theBonneville Power Administration for $25.1 million. FredericksonPower is a partnership between Westcoast power and EPCOR PowerDevelopment Corporation. “Completion of the Frederickson Powerproject will provide an alternative to existing hydro-electricpower facilities that can not meet increased demand,” saidWestcoast Power President Jeff Meyers. “It will produce energysafely and efficiently with a preferred fuel source which supportsefforts to improve local air quality and addresses climate changeconcerns.” The plant is expected to cost $160 million and has acomercial operation date set for the middle of 2002.
ANR Blows Guardian Full of Holes at FERC
ANR Pipeline unloaded an arsenal at the Guardian Pipelineproject yesterday in a protest and request for dismissal filed withFERC. If Guardian is built, it would be a bypass of ANR, resultingin 650 MDth/d of firm transportation capacity being turned back tothe Coastal subsidiary. That turnback capacity would mean a loss of$54 million in annual revenue, ANR said, of which $26 million couldbe avoided if Wisconsin Gas accepted a competing proposal presentedby ANR. ANR is requesting it be allowed to charge Wisconsin Gas anexit fee if Guardian is approved.
Wisconsin Industrial, Utility Providers Back Guardian
A number of utility and industrial customers in Wisconsincontinue to register their support for the proposed GuardianPipeline, which — if built — would offer the state its firstglimpse of gas pipeline competition.
WI Industrial, Utility Providers Back Guardian
A number of utility and industrial customers in Wisconsincontinue to register their support for the proposed GuardianPipeline, which — if built — would offer the state its firstglimpse of gas pipeline competition.
Exxon-Mobil Marching Toward Marriage
Exxon Mobil launched a new organization structure built on aconcept of eleven separate global businesses designed to allow thecompany to compete more effectively in a changing worldwide energyindustry. Lee Raymond, CEO, said by mid-December the company willannounce a revised forecast of merger benefits that will likelyexceed the $2.8 billion annual level announced last year.
Fundamentals, Screen Keep Cash Quotes Rising
Cash prices built further Tuesday on their early-week gains invirtually every market except Northern California. Factors behindthe firmness remained much the same as on Monday: a moderate screenincrease, a “stash it while you can” storage mentality and agradual warming trend in northern market areas. Price movementranged from flat on several Rockies pipes to about a nickel higherat many Gulf Coast and Midcontinent points.