City

Kansas City, MO-based Aquila Inc. reported Wednesday that it posted a staggering second-quarter net income of $101.3 million ($1.05 per share), an increase of 367% over the prior year’s second-quarter net income of $21.7 million ($0.25 per share). The sizeable increase was led by the company’s wholesale services segment, which boasted an earnings before interest and taxes (EBIT) of $148.5 million, compared to the segment’s $25.3 million posted during the second quarter of 2000. Aquila said that first-half EPS and net income exceed full-year 2000 results.

Although not giving up its search for customers in California, Salt Lake City-based Questar Corp.’s oil-to-natural-gas converted pipeline from the Four Corners of New Mexico remains stymied in operating its portion within California under a newly revised “peaking tariff” for Southern California Gas Co., according to Questar officials who have been analyzing the new rate established Aug. 2 by state regulators (see Daily Gas Price Index, Aug. 3). Questar is looking at alternative uses for the California portion of the approved interstate pipeline.

The City of Los Angeles Department of Water and Power (DWP) reported on Wednesday that Kenneth T. Lombard has been re-elected president of the Los Angeles Board of Water and Power Commissioners. He begins his fourth year on the commission and his second term as president.

San Jose-based Calpine Corp. and Kansas City-based Aquila Inc. announced that the Aries Power Project near Pleasant Hill, MO, has begun simple-cycle operations. The 320 MW gas-fired facility will serve the growing electricity demand in the region.

Texas Eastern will require the shut-in of all production upstream of the Provident City Plant on its Wilcox System in the South Texas Zone starting Tuesday due to anomaly investigations and the subsequent pipe repair needed. The work is expected to be completed sometime Saturday in order for gas flow to resume Sunday.

Kerr-McGee has received antitrust approval for its $1.3 billion acquisition of natural gas producer HS Resources Inc., based in San Francisco. The Oklahoma City independent said it had been granted early termination of the waiting period under the Hart-Scott-Rodino Act, and when completed, Kerr-McGee would join the top five list of leading oil and gas independents, and would up its gas reserves 77%. Kerr-McGee announced in mid-May that it would acquire gas-rich HS Resources for $66 per share (see NGI, May 21). The deal will consist of a 70% cash payment and 30% of Kerr-McGee Stock. Kerr-McGee also will assume about $450 million of HS Resources’ debt. With its core program in the Rockies, HS Resources holds about 1.3 Tcfe in reserves in the Denver-Julesburg Basin of northeast Colorado. With the acquisition, Kerr-McGee said it expected to increase its daily production of U.S. natural gas by more than 45%.

Kerr-McGee has received antitrust approval for its $1.3 billion acquisition of natural gas producer HS Resources Inc., based in San Francisco. The Oklahoma City independent said it had been granted early termination of the waiting period under the Hart-Scott-Rodino Act, and when completed, Kerr-McGee would join the top five list of leading oil and gas independents, and would up its gas reserves 77%.

In order to repair a mainline fitting at the Stanfield (OR) CityTap, PG&E Gas Transmission-Northwest (GTN) will isolate itsA-Line between Main Line Valves 8-2.5 and 8-3.0 for about 16 hoursThursday. Capacity at points downstream of MLV 8-3.0 will bereduced about 70 MMcf/d to 2,000 MMcf/d. Based on current flowconditions, GTN estimated Station 14 immediately upstream fromMalin will experience a capacity cut from 1,940 MMcf/d to 1,875MMcf/d. Every effort will be made to return the system to fullcapacity by Friday’s gas day, GTN said.

With December natural gas usage bills hitting extraordinarilyhard in Illinois this year, city and state legislators have set outin search of clues as to why gas prices are through the roof.Spurred by the urgings of Gov. George H. Ryan and variouslegislators, the Illinois Commerce Commission voted 5-0 to open aninvestigation into this winter’s natural gas price spikes. The ICCalso directed its staff to put together its final report within 60to 120 days (see Daily GPI, Jan. 10).