Engaging

After engaging in a Northeast LDC eating binge last year, EnergyEast Corp. started the digestion phase of its strategy yesterday byannouncing the completion of its Connecticut Energy purchase. Thetransaction gives Energy East control over Southern Connecticut GasCo., an LDC serving 160,000 customers. The original purchase offerwas made last April for $617 million. Energy East (formerly knownas NYSEG) still has a full plate, however, as its transactions withCTG Resources, CMP Energy and Berkshire Energy are still beingprocessed. Following the completion of all the acquisitions, EnergyEast will have more than 1.3 million electric customers and morethan 542,000 gas customers, excluding any added through CMP NaturalGas, the Maine gas distribution partnership of Energy East and CMP.With CTG and Connecticut Energy, Energy East becomes the largestgas distributor in the state with about 300,000 customers.

While making clear the administration would not be engaging inany market-rigging through price ceilings or floors, EnergySecretary Bill Richardson said it nevertheless was working onfurther measures to aid the depressed oil and gas industry.

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.