California regulators have given the green light to continueindefinitely the three-year-old incentive gas buying program atSouthern California Gas Co., dispensing at year-end 1998 with anannual review of the program, which has even drawn praise from theusually critical Office of Ratepayer Advocates (ORA) at theCalifornia Public Utilities Commission. The program reportedly hassaved millions of dollars for SoCalGas’ smallest customers who relyon the utility to buy their supplies. In 1998, SoCalGas reportsearning a $2 million award for its shareholders for the latest12-month operations of its so-called “Gas Cost IncentiveMechanism.” Based on benchmarked market prices if SoCalGas can dosignificantly better than the market average, resulting inquantifiable savings for its merchant customers, part of thosesavings flow back to its shareholders, who in this case are ownersof the SoCal parent, Sempra Energy. Shareholders have earned $16million in rewards through the incentive gas-purchase program overthe past three years, according to SoCalGas.
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SoCal Purchasing Incentive Plan Extended
California regulators have given the green light to continueindefinitely the three-year-old incentive gas buying program atSouthern California Gas Co., dispensing at year-end 1998 with anannual review of the program, which has even drawn praise from theusually critical Office of Ratepayer Advocates (ORA) at theCalifornia Public Utilities Commission. The program reportedly hassaved millions of dollars for SoCalGas’ smallest customers who relyon the utility to buy their supplies.
Midcoast Buying Koch Pipes in Texas, Louisiana
Midcoast Energy Resources has agreed to buy the Gloria pipelinesystem in southeastern Louisiana and the Bruni gathering system inSouth Texas for nearly $7.53 million from Koch Gateway Pipeline.
Midcoast Energy Buying Koch Pipes in TX, LA
Midcoast Energy Resources Inc. agreed to buy the Gloria pipelinesystem in southeastern Louisiana and the Bruni gathering system insouth Texas for nearly $7.53 million from Koch Gateway Pipeline Co.
Dynegy, NRG Buying SDG&E Generation
San Diego Gas & Electric (SDG&E) completed divestiture ofall its fossil-fueled generation with the selection of Dynegy Inc.and NRG Energy Inc. as the joint winning bidder for its 951 MWEncina Power Plant in Carlsbad, CA.
Duke Buying Australian Power Business
Duke Energy International, LLC (DEI) acquired Broken HillProprietary Company Ltd.’s power business (BHP Power) for $315million. The purchase will establish DEI as an industrial energyfacility operator in the emerging competitive Australianelectricity market.
Boston Edison Parent Buying Commonwealth Energy
Consolidation continued last week among Massachusetts utilities, this time with an electric planning to buy a combination utility in a move that follows the maxim that bigger is better in a deregulated market. Boston Edison parent BEC Energy and Cambridge, MA-based gas and power holding company Commonwealth Energy System plan to merge in a cash and stock deal.
ScottishPower Buying PacifiCorp for $7.9 B
Despite losing to Texas Utilities in an attempt to acquireBritish power giant The Energy Group earlier this year, PacifiCorpshowed yesterday it has not lost its taste for things British. Thistime, however, it’s on the other end of a merger deal. The companyagreed to a friendly takeover by ScottishPower, Scotland’s largestelectric utility, for an estimated $7.9 billion in stock.ScottishPower also will assume PacifiCorp’s $4.9 billion debt.
Survey: Interest Grows In Bundled Services
Consumers are becoming more interested in buying energy,communications and other services in one-stop package deals, arecent national survey has found. However, customers expect any”bundled” products and services to be offered at a discount of atleast 5%, according to the survey. In fact, interest in specificpackages increases in direct proportion to the depth of thediscount. Overall, customers assume that combining products andservices in a package over a single brand will add value and createeconomies of scale
Magnum Buying Spirit’s Oklahoma Properties
Spirit Energy 76, Unocal Corp.’s Lower 48 exploration andproduction unit, agreed to sell substantially all of its oil andgas assets in Oklahoma to Magnum Hunter Production Inc. for about$36 million in cash.
