Closer

Aquila Inc. has accepted a takeover offer by Vector Ltd. for subsidiary UnitedNetworks, which is based in New Zealand. Vector now will make the takeover offer to UnitedNetworks shareholders to buy the outstanding stock for US$302.6 million (NZ$9.90 a share). Under the agreement, Utilicorp. NZ Ltd., an indirect, 79%-owned subsidiary of Aquila, committed to selling its 70.2% interest in UnitedNetworks to Vector. Aquila will use the proceeds to pare down more of its debt load.

PJM Interconnection’s market monitoring unit (MMU) is taking a closer look at a series of events that took place earlier this month involving a power trading practice that churned loop flows higher by more than 3,000 MW and increased prices after a gulf emerged between contract and actual power flows at the grid operator’s interfaces with American Electric Power (AEP) and Dominion Virginia Power.

Offshore liquefied natural gas (LNG) and compressed natural gas (CNG) terminals came closer to reality last Tuesday with the passage of H.R. 3983 by the House of Representatives. If the Maritime Transportation Antiterrorism Act of 2002 becomes law in its current form, among other things it would allow the Department of Transportation to license offshore port facilities for both LNG and CNG, an option currently reserved only for oil.

The proposed merger between Potomac Electric Power Co. and Conectiv came one step closer to becoming a reality last Tuesday after the Delaware Public Service Commission (PSC) voted to approve the transaction.

Duke Energy Corp.’s deal to pick up Vancouver-based Westcoast Energy moved another step closer Friday after receiving approval from federal Industry Canada (similar to the U.S.Dept. of Commerce). The cash, stock and debt acquisition, valued at US$8 billion, would allow the Charlotte, NC-based diversified energy company to grow its Canadian business and expand its North American natural gas infrastructure. As part of the transaction, Duke also plans a significant financial investment in its stake, adding several new Canadian offices and donating funds for Canadian educational research.

Thursday’s market was a near-repeat of the one the day before: moderate softening in the East but closer to flat in the West. The main differences were smaller eastern losses (virtually all declines were around a dime or less Thursday) and the fact that a few western points, primarily PG&E-related, were able to eke out modest gains.

Comptroller General David M. Walker has submitted a General Accounting Office (GAO) report to Congress outlining the agency’s months-long failed attempt to obtain records from Vice President Dick Cheney related to the workings of the Cabinet-level task force on energy policy.

Comptroller General David M. Walker submitted a General Accounting Office (GAO) report to Congress Friday outlining the agency’s months-long failed attempt to obtain records from Vice President Dick Cheney related to the workings of the Cabinet-level task force on energy policy.

The Northeast moved a step closer to getting a major new power transmission line, linking surplus generation in Maine and Atlantic Canada with rapidly growing demand in Boston, New York and the Mid Atlantic region. FERC last Wednesday conditionally approved the transmission project filed by Neptune Regional Transmission System LLC consisting of several thousand miles of undersea high-voltage direct transmission. Among other things, the Commission said that its approval was contingent upon Neptune joining the Northeastern regional transmission organization (RTO).