Creation

Legislation filed earlier this week in the Texas Senate would result in the creation of a state energy panel that would be tasked with recommending a statewide energy plan to the Texas Legislature no later than the end of next year.

Although the creation of Westar Energy did not follow the pathoriginally intended, plans for the utility holding company were setin motion last week when Western Resources announced it will splitthe company into two separate entities, one covering electricutility businesses and another for its non-electric operations.Both companies will be public entities. The separation is expectedoccur through a voluntary exchange offer expected to be completedprior to year-end.

San Diego-based Sempra Energy, the creation of a merger betweenPacific Enterprises and Enova in mid-1998, has announced avoluntary job cut plan seeking a net reduction of about 275positions, or about 2.5% of its overall work force. The majority ofthe job eliminations will be rolled out in January and will targetmanagement and administrative support jobs at Sempra’s corporateheadquarters and in its two California utilities, SouthernCalifornia Gas and San Diego Gas and Electric.

In the same week that plans for the creation of its largest competitor were finalized (see story this issue), Dynegy Midstream Services LP announced definitive agreements to sell certain East Texas gathering, treating and processing facilities to an independent midstream processing company. The closing of the sale is expected to occur prior to year-end. Neither the identity of the buyer nor the sale price was disclosed.

San Diego-based Sempra Energy, the creation of a merger betweenPacific Enterprises and Enova in mid-1998, has announced avoluntary job cut plan seeking a net reduction of about 275positions, or about 2.5% of its overall work force. The majority ofthe job eliminations will be rolled out in January focusing onmanagement and administrative support jobs at Sempra’s corporateheadquarters and in its two California utilities, SouthernCalifornia Gas and San Diego Gas and Electric.

TransCapacity announced the creation of the gas coordinationsystem (GCS), a tool to communicate and coordinate transactionintentions to external parties so gas can be bought, sold andtransported. TransCapacity’s suite of services works as a GCS tocollect and disseminate information a user can import into its gasmanagement system (GMS).