Deal

The proposed $15 billion merger of energy giants El Paso EnergyCorp. and Sonat Inc. got a regulatory go-ahead yesterday from FERC,clearing the way for the transaction to close by early October.

While deal activity in the capacity release markets appears tobe leveling off, the market is still dynamic enough to accommodatenew market entrants, according to energy industry consulting firmSkipping Stone Inc.

DukeSolutions, the energy services subsidiary of Duke Energy,was awarded as contract by the Veterans Integrated Services Network6 (VISN-6) to provide energy efficiency products and services ateight Veterans Affairs Medical Centers in Virginia, West Virginiaand North Carolina.

DukeSolutions, the energy services subsidiary of Duke Energy,was awarded as contract by the Veterans Integrated Services Network6 (VISN-6) to provide energy efficiency products and services ateight Veterans Affairs Medical Centers in Virginia, West Virginiaand North Carolina.

In an effort to deal with the serious decontracting problem onits pipeline system caused by the addition of Northern Border’sChicago expansion and the Alliance Pipeline project, TransCanadasaid last week it is strongly considering filing an applicationwith the National Energy Board this month to increase itsinterruptible and short-term firm transportation rates, somethingthe pipeline’s shippers almost certainly will oppose.

In an effort to deal with the serious decontracting problem onits pipeline system caused by the addition of Northern Border’sChicago expansion and the Alliance Pipeline project, TransCanadasaid last week it is strongly considering filing an applicationwith the National Energy Board this month to raise the floor pricefor interruptible and short-term firm transportation service,something the pipeline’s shippers almost certainly will oppose.

The Public Utility Commission of Ohio (PUCO) filed a statementwith the federal Securities and Exchange Commission (SEC)supporting the merger of Dominion Resources Inc. and ConsolidatedNatural Gas Co. The PUCO told the SEC that the agency wouldcontinue to exercise jurisdiction over the regulated activities ofThe East Ohio Gas Co., CNG’s gas distribution company in Ohio, andthat the merger would have no impact on its ability to protect theinterests of Ohio ratepayers. The PUCO’s approval is not needed,but the commission conducted a review at the request of East OhioGas.

With two more months of breathing room to work out a deal,Southern California Gas Co. has substantially modified its originalrestructuring proposal for the resumption of settlementnegotiations this week in Los Angeles. With SoCalGas leading theway, representatives of 75 interested parties are attempting tohammer out a consensus on how further unbundling is shaped forCalifornia’s natural gas industry.

Devon Energy Corp. and PennzEnergy Co. completed their merger,which was announced May 20. Shareholders of both companies approvedthe deal Tuesday. More than 99% of the shares represented at theDevon meeting were cast in favor of the merger. Of the sharesrepresented at the PennzEnergy meeting, about 92% were cast infavor of the merger.