Exchange

In an open letter to the governor of California, Vincent Viola,the new chairman of the New York Mercantile Exchange suggested thestate could solve its power price problems if it “promptly” turnedloose large customers and let them buy power for themselves,eliminated any monopoly, “be it the PX, Department of WaterResources, or the Independent System Operator,” and started usingfinancial instruments to protect consumers, rather than lock inlong-term, high-priced contracts.

Neutered earlier this year by federal and state actions, theCalifornia Power Exchange (Cal-PX) late Friday filed for Chapter 11protection in the U.S. Bankruptcy Court, California CentralDistrict. The action came as another of the wounded in theCalifornia power crisis, Southern California Edison, told itsbondholders furtherÿrate increases for consumers are likely basedon the latest move last Wednesday by state regulators to assurethat all of the state water resource department’s (DWR’s) wholesalepower costs will be covered by utility rates,

FERC has given Southern California Edison until noon today (PST)to pay the California Power Exchange (Cal-PX) for its bulkelectricity purchases, which is the deadline by which the Cal-PXmust pay its creditors.

Aquila Energy and AMDAX — American Direct Access Exchange —plan to tear down the geographic barriers of their two companiesand form an alliance to expand the reach for commercial andindustrial customers using their Web-based auction sites.

The price roller coaster continued in the natural gas pit at theNew York Mercantile Exchange Thursday as traders went through themotions of checking the latest hurricane forecast and then tradedaccordingly. Yesterday that translated into selling, by trade andlocals alike, as they reduced their long exposure on the news thatDebby had weakened into a tropical wave.

The $6 billion NiSource-Columbia merger is on its way down the homestretch, with only the Securities and Exchange Commission’s approvalleft in its path on the way to its predicted end of the yearcompletion date (see Daily GPI, July27). To ensure that the combined company moves through thetransition process smoothly, NiSource announced more post-mergerleadership positions for its lengthy list of business units.

Allegheny Power of Hagerstown, MD is closer to having 200,000new natural gas customers after getting a thumbs up from theSecurities and Exchange Commission yesterday to acquire MountaineerGas Co., West Virginia’s largest natural gas provider.

The board of directors of the New York Mercantile Exchange hasamended plans to move up the start-up time for natural gas futurestrading because of the overlap with crude oil markets, which sharean options ring with natural gas. Daily gas futures trading nowwill commence at 9:30 a.m. rather than 9:45. The board hasscheduled expanded energy trading hours to begin with the Sept. 8trading session.

The New York Board of Trade (NYBOT) and the New York MercantileExchange (Nymex) have announced a settlement of the litigationbetween them relating to the suspension of a clearing member, Klein& Co. Futures, Inc., from NYBOT and its clearinghouse, the NewYork Clearing Corporation (NYCC).