Euro

A 74% spike in crude oil prices since the beginning of 2006 and a 28% dip in the value of the dollar against the euro have substantially affected the competitive positions of domestic energy industries, affecting imports and exports of both gas and coal, and changing usage patterns for natural gas, according to Charles Whitmore of FERC’s Office of Enforcement.

Banker Goldman Sachs said Friday it had purchased the European natural gas and power trading books of Dynegy Inc. and El Paso Corp., some of them 10-15 year contracts. El Paso said in February that its European trading book had been sold for $80 million but did not disclose the buyer (see Daily GPI, Feb. 28).

TXU Europe Ltd. and its European subsidiaries was downgraded to one level above “junk” status Thursday by Standard & Poor’s Ratings Services (S&P), which may drop the TXU Corp. subsidiary below investment grade “in the very near future.” S&P’s action followed that by Moody’s Ratings Service on Wednesday and Fitch Ratings last Friday. S&P did not drop the corporation’s credit rating, however.

Just three months after Houston-based Dynegy announced it wouldenter the North American wholesale broadband communicationsbusiness, it now is storming into Europe with a deal to buyLondon-based iaxis Ltd., a cash poor fiber optic network operator.

Just three months after Houston-based Dynegy announced it wouldenter the North American wholesale broadband communicationsbusiness, it now is storming into Europe with a deal to buyLondon-based iaxis Ltd., a cash poor fiber optic network operator.Dynegy also told analysts yesterday that it expects earnings tojump 20% to 25% per year over the next three years spurred by itsasset-based growth plan.