Charge

Rhode Island Gov. Donald. Carcieri on Thursday signed an executive order creating Rhode Island’s first chief energy advisor to the governor, who will be in charge of coordinating state energy policy and overseeing the state energy office.

While a California congressman, backed by manufacturers across the country, is leading the charge to lift restrictions on offshore drilling for oil and natural gas, a report to the California Independent System Operator’s (CAISO) oversight board points out that natural gas prices in the West have been relatively unaffected by the recent hurricanes and have been significantly lower than the rest of the country.

Duke Energy said Tuesday that it will take a $1.3 billion non-cash, pretax charge ($0.88 per basic share) in the third quarter because of a decision to sell off all of Duke Energy North America’s (DENA) physical and commercial assets outside the midwestern United States. The proposed sale includes about 6,200 MW of power generation as well as DENA’s trading book.

The players that took charge of the energy merchant sector following the dismal 2001-2002 shakeout continued to lead North American wholesale natural gas sales in 1Q2005, with BP plc, Sempra, ConocoPhillps, Coral and Atmos holding the top five spots in NGI’s latest natural gas marketing survey. However, new participants began “immigrating” into the business during the first quarter, and more are expected to follow, industry experts predict.

The 5th U.S. Circuit Court of Appeals is considering arguments on the constitutionality of the federal law used to charge a former Dynegy Inc. energy trader with making false natural gas trades. Michelle Valencia was charged last year with reporting false energy trading information, and prosecutors appealed a ruling by a Houston judge that narrowed the language prosecutors may use to prove her guilt (see NGI, Nov. 24, 2003).

Certain employees of El Paso Corp. used “unsupportable methods” over a four-year period, which resulted in a 41% overbooking of oil and natural gas reserves, according to an independent review released last week. No current or former employees were named in a statement by the company.

Lea Fastow, who pleaded guilty in May to a misdemeanor tax charge in an Enron Corp.-related case, will spend her year-long sentence at the Federal Detention Center in downtown Houston, a far cry from the minimum security prison she had requested.

Lea Fastow, who pleaded guilty in May to a misdemeanor tax charge in an Enron Corp.-related case, will spend her year-long sentence at the Federal Detention Center in downtown Houston, a far cry from the minimum security prison she had requested.

Lea Fastow, wife of the former Enron CFO, pleaded guilty Thursday in a Houston courtroom to one misdemeanor charge for filing a fraudulent tax return. She will serve one year in federal prison and one year of supervision after she is released.