Defense

Duke Energy mounted a public defense of its investment-grade credit ratings on Tuesday by laying out the details of a three-year plan (2003-2005) to sell off billions of dollars in non-core assets, cut capital expenditures and pay down as much as $5.5 billion in debt over the period.

After waiting nearly eight months for a response, the Natural Resources Defense Council (NRDC) filed a lawsuit in federal court in Washington, DC, last week to force the Department of Energy (DOE) to produce records related to its role on the White House task force that developed the national energy policy.

The Department of Defense (DOD) could potentially reduce demand on the western power grid by generating 90 MW of electricity and implementing conservation initiatives, although the use of DOD assets raises environmental and mission concerns, the General Accounting Office (GAO) recently told Congress. The GAO also said that although significant private back-up generation capacity exists in California its potential use is limited due to business and environmental risks.

The Department of Defense (DOD) could potentially reduce demand on the western power grid by generating 90 MW of electricity and implementing conservation initiatives, although the use of DOD assets raises environmental and mission concerns, the General Accounting Office (GAO) recently told Congress. Meanwhile, the GAO also said that although significant private back-up generation capacity exists in California, its potential use is limited due to business and environmental risks.

Facing the prospect of Davis administration regulators sacking electric retail competition, an alliance of large and small interests Tuesday urged California officials to consider alternatives that do not require shutting down the last vestiges of its 1996 restructuring law permitting direct access contracts.

Columbia Energy Group revealed last week that its defense against a hostile takeover by NiSource has become quite costly, reaching $9 million in pre-tax expenses during the third quarter. The company also took a $4 million pre-tax charge during the third quarter for restructuring its retail marketing operation. The two setbacks combined led to a net loss of $9.7 million (12 cents per share) during the quarter compared to net income of $11.2 million (13 cents per share) during the same period last year. The company reported income from continuing operations of $800,000, or 1 cent per share, compared to $12.2 million, or 14 cents/share in 3Q98.

Columbia Energy Group revealed yesterday that its defenseagainst a hostile takeover by NiSource has become quite costly,reaching $9 million in pre-tax expenses during the third quarter.The company also took a $4 million pre-tax charge during the thirdquarter for restructuring its retail marketing operation. The twosetbacks combined led to a net loss of $9.7 million (12 cents pershare) during the quarter compared to net income of $11.2 million(13 cents per share) during the same period last year. The companyreported income from continuing operations of $800,000, or 1 centper share, compared to $12.2 million, or 14 cents/share in 3Q98.

NiSource suffered two significant setbacks last week in itsbattle for a $5.7 billion hostile takeover of Columbia EnergyGroup, but the company vowed to continue its pursuit of Columbia.

A day after a Delaware Judge dismissed one of three NiSourcelawsuits against Columbia Energy Group, NiSource suffered yetanother setback in its battle for a hostile takeover of Columbia.Ohio State Representative David Goodman (R-Bexley), who already haspublicly opposed the merger, has introduced legislation designed toclose a loophole in Ohio law that would allow hostile takeovers ofgas utilities to take place without public review and scrutiny.Goodman was joined as sponsor of the legislation by 77 of the 99members of the Ohio House of Representatives.