Cleared

FERC cleared the way yesterday for Southern LNG Inc. to take itsliquefied natural gas terminal facility on Elba Island in Georgiaout of the mothballs.

The Midwest utility landscape should expect radical changessoon, as two major mergers have cleared all regulatory approvalsand are closing in on completion.

Exxon and Mobil said yesterday they expect antitrust reviews oftheir proposed $88 billion merger will be completed by the end ofthe third quarter. The companies filed the formal pre-mergernotification with the European Commission on May 3. Under the EC’sregulatory framework, that process should be completed around theend of September. As a result of discussions with the Federal TradeCommission, the companies believe that the FTC process can becompleted in the same time period. Shareholders of both companiesare scheduled to vote on the deal on May 27.

The Sempra Energy-KN Energy merger leaped its first hurdle last Monday, as the Federal Trade Commission (FTC) cleared it under the Hart Scott Rodino Act. Shareholders from both companies as well as other federal and state regulatory authorities still need to approve the deal.

The Sempra Energy-KN Energy merger leaped its first hurdleMonday, as the Federal Trade Commission (FTC) cleared it under theHart Scott Rodino Act. Shareholders from both companies as well asother federal and state regulatory authorities still need toapprove the deal.

After a long, drawn-out regulatory process, Nipsco Industries(NI) finally completed its merger with Massachusetts-based BayState Gas Co., giving the Indiana-based holding company a powerfulEast Coast influence. The $780 million merger originally wasannounced in December 1997 and was expected to close before the endof 1998. Final documents were signed last Friday.

FERC last week changed its tune and cleared the way for NorthernNatural Gas to acquire off-system, interruptible capacity fromthird-party pipelines. On rehearing of a July order, the Commissionfound that since Northern Natural sought the IT capacity to augmentits own operations, rather than for the purpose of re-marketing it,its request did not raise the concerns cited in a 1997 TexasEastern Transmission (Tetco) case.

FERC last week changed its tune and cleared the way for NorthernNatural Gas to acquire off-system, interruptible capacity fromthird-party pipelines. On rehearing of a July order, the Commissionfound that since Northern Natural sought the IT capacity to augmentits own operations, rather than for the purpose of re-marketing it,its request did not raise the concerns cited in a 1997 TexasEastern Transmission case. There, FERC feared that third-partypurchases could lead to preferential treatment for purchasingpipelines and could limit the capacity choices of other customerson third-party systems.

Bill Richardson was sworn in as the new energy secretary onTuesday, one day after Senate Energy Committee Chairman FrankMurkowski (R-AK) cleared him of allegations that he may have misledCongress when testifying during his confirmation hearing last monthabout a job offer he made to former White House intern Monica S.Lewinsky.