Decided

Enron Corp. has decided not to move forward with plans to construct a 500 MW power plant in Pompano Beach, FL, a decision that company spokesperson Eric Thode said is in keeping with Enron’s overall practice of going into a state with plans to build more plants than the company actually intends to construct. Thode emphasized that the move had nothing to do with public opposition to the facility.

After a day’s delay for some last-minute horse-trading, California regulators decided Tuesday to spread a $5.7 billion (3-cent/kW) rate increase to both moderate and large energy users to encourage power conservation going into the critical summer peak-demand period. The increase, which was okayed March 27, takes effect June 1 for Pacific Gas and Electric and June 3 for Southern California Edison with five “rate tiers” tied to consumption levels.

In response to a FERC directive, the California Power Exchange(Cal-PX) board last week decided to shut down day-ahead and day-ofwholesale electricity markets Jan. 31, bringing toÿa close one partof the state’s initial 1996 electric industry restructuring lawthat created the state-chartered, nonprofit public benefitscorporation to provide a wholesale spot market through whichCalifornia’s three major investor-owned utilities were required tobuy and sell all of their wholesale power. They are no longerrequired to do so.

Quicksilver Resources decided to start 2001 with a bang as thecompany announced last week that it had completed the acquisitionof nearly all of Mercury Exploration Co.’s natural gas processing,gathering, transmission, compression and marketing assets for justover $18 million. The Fort Worth-based company also announced thatit has completed the purchase of the remaining minority interest inits Canadian subsidiary, MGV Energy, for the equivalent of 283,669shares of Quicksilver common stock.

In an effort to realize more value for its shareholders, PlainsResources has decided to evaluate strategic restructuringalternatives to help increase the value, and value-creating abilityof its upstream and midstream business segments.

After marketing natural gas to Georgia customers for a littleless than a year, DukeSolutions, a unit of Duke Energy, has decidedto throw in the towel. The marketer which only has firm contractswith 16 customers on the Atlanta Gas Light system, filed a petitionwith the Georgia Public Service Commission (GPSC) to cancel its”Certificate of Authority” to provide natural gas marketingservices in Georgia.

The California Public Utilities Commission Thursday decided totemporarily mandate that large electricity customers who have optedfor price breaks by voluntarily agreeing to be curtailed duringextreme peak-demand periods remain on their interruptible scheduleat least through March 31, 2001. The regulators took the action tocoincide with a statewide effort now underway to beef up thecurtailment program before next summer to have more voluntarycurtailed load in place if needed to avoid rolling blackouts duringpeak-demand times.

Lacking little new input from weather or futures, the cashmarket decided to take it easy for the most part Tuesday. Flat toslightly higher pricing dominated in most areas, with most of thelarger gains of about a dime or more occurring at Rockies/San Juanpoints.

At the end of a mostly negative price week, traders decided togo quietly into the weekend Friday. Nearly all points were flat toless than 4 cents up or down.