Evidence

Enron Oil & Gas Co. (EOG) 1998 net income was less than halfwhat it was in 1997, which could be considered additional evidencethe company really is considering an “unsolicited offer” to buy thecompany.

The 1 Bcf/d Vector Pipeline project won preliminary approval onnon-environmental grounds from FERC yesterday. The Commission saidno evidence was produced to demonstrate the Midwest project, whichwould link the Chicago, IL, and Dawn, ON, gas transportation hubs,was not required by the public convenience and necessity.

A staff team of the Federal Energy Regulatory Commission said itfound no “direct evidence” that market manipulation contributed tothe spike in electricity prices in the Midwest market last June,but it did uncover some questionable practices. Moreover, itconcluded that the pricing turmoil was a rare event that wouldn’tlikely occur again.

NGC Corp. touted several recent developments as evidence of itsstrong position in the California electricity marketplace.