Desperate

Desperate to produce some kind of energy legislation to take home to constituents during the August recess, Democrats in the U.S. House of Representatives made another run at passage of a retreaded “use it or lose it” bill to restrict leasing on public lands Thursday, and lost.

Desperate to improve its financial situation, Dynegy Inc. announced it is selling all of Northern Natural Gas Co. (NNG) to Berkshire Hathaway’s MidAmerican Energy Holdings Co. for $928 million in cash and the assumption of $950 million in outstanding NNG debt. The transaction results in nearly a $600 million loss on the asset, which Dynegy bought from Enron late last year for $1.5 billion, but provides much needed liquidity to Dynegy, which has been under intense selling pressure on the stock market, particularly last week when its shares reached a low of 51 cents. Dynegy shares were up 52 cents (76%) on Monday to $1.20.

Despite the nine natural gas suppliers who bellied up to PacificGas & Electric’s bar last week after the federal emergencyorder expired, the utility still faces “the possibility of a severegas supply crisis.”

Despite the desperate need for natural gas currently, long-haulpipeline construction is headed for a temporary lull over the nextfive years, according to Thomas Howard, director of strategicproducts at PIRA Energy Group, a New York City-based energyconsulting firm.

Despite the desperate need for natural gas currently, long-haulpipeline construction is headed for a temporary lull over the nextfive years, according to Thomas Howard, director of strategicproducts at PIRA Energy Group, a New York City-based energyconsulting firm.

Department of Energy Secretary Bill Richardson last week likenedthe power industry to an old jalopy in desperate need of repair.

Department of Energy Secretary Bill Richardson likened the powerindustry to an old jalopy in desperate need of repair yesterday atan energy conference in Washington, D.C. sponsored by the NationalEnergy Marketers Association. He expressed concern that Congresshas not been too interested in moving power restructuringlegislation and said if legislation isn’t completed soon there willbe dire consequences. “My main message is that unless there isrestructuring soon there are going to be power outages in thiscountry,” Richardson said.