Certainty

Eyeing next year with increased regulatory and market certainty, Xcel Energy late last week reported increased profits for the third quarter and the nine months ended Sept. 30, posting net income of $224 million and $471 million for the two 2006 periods, respectively, compared to $196 million and $400 million for the same two periods last year.

National Grid confirmed it is in talks with KeySpan Corp. to potentially acquire the company in an all-cash deal. However, “there is no certainty that they will lead to any definitive agreement,” National Grid said in a statement. “If agreed, any transaction would be on an all cash basis, satisfied wholly from borrowings.”

Citing improved wholesale power sales and increased market/regulatory certainty, the holding company for New Mexico’s largest utility, Public Service Company of New Mexico (PNM), Thursday increased its earnings estimate by 10 cents/share this year, compared to 2003. PNM Resources, Albuquerque, offered a range of $1.90 to $2.15/share this year, following last year’s $1.80-$2.05/share estimate.

FERC should act to improve price reporting and transparency in the natural gas market by supporting appropriate standards for energy companies to follow when reporting trade data to publishers and pledging not to penalize companies that follow those standards, Platts said in a filing Friday (AD03-7-001).

The western wholesale energy markets can use more “yes, buts…” and fewer “hell, nos” if they are ever going to regain investor, regulator and consumer confidence, the head of the Arizona state regulatory commission told a nationally assembled industry teleconference panel.

In an effort to restore price certainty in the markets, FERC at a minimum should implement standards requiring jurisdictional companies to show the agency that the natural gas price indexes referenced in their tariffs and contracts are reliable, said Commissioner William Massey last Wednesday.

In an effort to restore price certainty in the markets, FERC at a minimum should implement standards requiring jurisdictional companies to show the agency that the natural gas price indexes referenced in their tariffs and contracts are reliable, said Commissioner William Massey Wednesday.

Natural gas futures were off to the races Monday morning as traders weighed the virtual certainty that Hurricane Lili would become the second storm in a week to impact production in the Gulf of Mexico. After gapping higher at the opening bell, the November contract quickly moved to a new four-month high (Access trading excluded) at $4.195 Monday morning. After dipping slightly to settle for the regular session at $4.138, the November contract was rebounding in overnight access trading. At 7:00 p.m. EDT, it last traded $4.194, up 5.6 cents from its close.

PG&E Corp. CEO Robert Glynn told financial analysts Wednesday that he sees “much more certainty” for his company now than there was a year earlier. He envisions 2002 as a year in which PG&E’s major utility subsidiary clears bankruptcy, some assets are sold and the regulatory climate stabilizes even if market volatility does not.