electric

Because of the size of the power industry, electric companieswill own the gas industry within the next decade, according to anofficial of Engage Energy. Of the 300 LDCs and about 110investor-owned utilities remaining in the country, roughly 100 willbe remaining at the end of the next decade, said David Pruner ofEngage Energy in Houston. The top-50 IOUs will control almost 80%of the entire energy market, he said at the DOE-NARUC natural gasconference in Pittsburgh yesterday.

State regulators decided yesterday to perhaps up the ante inconsidering penalties against Pacific Gas and Electric Co. foralleged rules violations in advertising and promotion materials bysome of its unregulated energy affiliate companies.

A wholly owned subsidiary of Potomac Electric Power Co. (Pepco)has purchased the assets and operations of a Maryland-based gasretail marketing firm for an undisclosed amount. The transactiongives Pepco through its subsidiary, Pepco Services, the capabilityto offer for the first time natural gas to its commercial,institutional and industrial customers.

Pacific Gas & Electric extended a low-inventory Stage 1 OFO(see Daily GPI, Sept. 1) through today. Penalties were unchanged,but the negative imbalance tolerance was tightened to 5%.

A 14% increase in electric sales and the absence of $70 millionin merger-related costs (posted in 2Q97) sent Duke Energy earningsper share soaring 77% during the second quarter to 76 cents/share,well above analysts’ estimates. Duke reported earnings for commonstock of $274.4 million compared to $157.6 million in 2Q97.

American Electric Power Co. Inc. (AEP) has denied charges itcapitalized on the turbulence in the Midwest electricity markets inlate June by allegedly engaging, along with other power marketersin the region, in “abusive price gouging” that contributed topower prices soaring into the thousands of dollars.

The nation’s largest municipal electric utility is rapidlyincreasing its participation in robust wholesale energycompetition, although as a government-run entity it is not directlya part of California’s ongoing restructuring of electricity andnatural gas. In the fiscal year just ended, the Los AngelesDepartment of Water and Power did about $110 million in wholesaleenergy deals, according to department sources, including one of itsbiggest natural gas contracts ever for more than 6 Bcf of suppliescovering the next six months.

California regulators and Pacific Gas and Electric (PG&E)earlier this week protested a letter agreement between El PasoNatural Gas and Dynegy Marketing and Trading, that they claim wouldgive the latter the “unilateral right” to keep a large portion ofthe Block II capacity on El Paso off the California market withoutbeing subject to recall rights.

Pacific Gas and Electric Co. is moving ahead with the sale offive additional power plants, following the California PublicUtilities Commission’s decision this week to lift a temporary haltto the plant auction in response to an appeal by local governmentofficials and a citizens’ action group in San Francisco where twoof the plants are located. PG&E is now authorized to reviewpreliminary bids (“nonbinding expressions of interest”) frompotential buyers.