Combining

With the start of another week of what promises to be widespread extra-hot weather combining with last week’s futures rally being extended by another 23.4 cents Friday, it was hardly surprising that cash prices were up strongly Monday at most points. Further stirrings of tropical activity in the Atlantic, including the formation of Tropical Depression 4, and the return of industrial load from its usual weekend hiatus also lent strength to the cash market.

As litigation over gas price manipulation allegations continues to mount following several settlements between gas marketing companies and the Commodity Futures Trading Commission, EnCana Corp. said late last month that it has temporarily withdrawn a request to have one case transferred to FERC until a decision is made on whether to combine the case with other class action lawsuits into one federal multi district litigation proceeding.

As litigation over gas price manipulation allegations continues to mount following several settlements between gas marketing companies and the Commodity Futures Trading Commission (see Daily GPI, Aug. 1), EnCana Corp. said Thursday that it has temporarily withdrawn a request to have one case transferred to FERC until a decision is made on whether to combine the case with other class action lawsuits into one federal multi district litigation proceeding.

Equitable Resources combined its Gulf of Mexico exploration andproduction unit with Westport Oil and Gas Co., a privateDenver-based exploration company. Equitable will receive about $50million in cash and a large minority interest in Westport.Equitable also will name three representatives and nominate afourth to the Westport board, bringing Westport’s board membershipto nine.

In yet another instance where bigger is believed to be better inthe deregulated energy marketplace, Boston Edison parent BEC Energyand Cambridge, MA-based gas and power holding company CommonwealthEnergy System plan to merge in a cash and stock deal. Thetransaction also represents the acquisition of gas assets byelectric BEC.

Dynegy Inc. said yesterday it is combining its power generationoperations with its trading and marketing organization to “furtherdefine and capture opportunities presented by the convergence ofthe gas and power industries.” The new organization will operateunder the name Dynegy Marketing and Trade. Steve Bergstrom willserve as president and chief operating officer.

Houston Industries (HI) is reconfiguring its organization tocapitalize on the convergence of gas and power. HI formed HoustonIndustries Wholesale Energy Group to combine its power generation,gas transportation, and wholesale energy trading and marketingcapabilities of the company.

The sponsors of Canadian-bound Vector Pipeline and TristatePipeline have been discussing the possibility of combining the twoprojects, but so far no agreement has been reached, according to aspokesman for one of the sponsors.