Eyes

Tossing aside an ongoing state regulatory investigation of someof its billing practices, California’s most aggressive independentenergy service provider (ESP), Commonwealth Energy, plans to moveinto Pennsylvania and New Jersey next month where it expects a morestraightforward and receptive marketplace for its residential andsmall business electricity products. While signing up more than60,000 customers in California’s daunting retail mass power marketsso far, Commonwealth has been able to pass on savings of up to fivepercent, emphasizing green power from environmentally benignsources, developing prospects for new green products and shoppingfor power generation operations of its own, in addition to eyeingother states as the next stage of its two-year-old development.

Raymond James & Associates’ gas analysts warned investorsyesterday the latest production statistics indicate gas productionis down 4-6% compared to last year. The St. Petersburg, FL-basedfirm highlighted several indicators, including sharply loweryear-to-year storage injections, reduced E&P company productionfigures, a growing “balancing item” reported by the Department ofEnergy in its gas market statistics and a survey of three of thelargest gas producing states.

Instead of trying to tackle head-on all the issues before it inits review of the short-term and long-term transportation markets,Commissioner Linda Breathitt has proposed that FERC first issue alimited final rule addressing the less-controversial issues andsave the more complex items for later. “From what I’ve read in thecomments [filed at FERC], the approach I am proposing appears to beone that many in the market could support,” she said in a recentspeech to the American Gas Association Legal Forum in La Jolla, CA.

There have been 26 natural gas utility mergers announced since1995, with 15 of them coming in the past year and seven in themonth of June alone. And there are “many more” to come, accordingto a Merrill Lynch report released last week.

There have been 26 natural gas utility mergers announced since1995, with 15 of them occurring in the past year and seven in themonth of June alone. And there are “many more” to come, accordingto a Merrill Lynch report released last week.

Amid the merger frenzy that gripped the energy industry lastweek, CMS Energy Chairman and CEO William McCormick said he didn’tenvision his company falling prey to a takeover as it strives tobecome the third largest energy concern in the world. Instead, hesees CMS Energy continuing in an aggressor role – being the buyer,not the buyee.

Amid the merger frenzy that has gripped the energy industry thisweek, CMS Energy Chairman and CEO William McCormick said he doesn’tenvision his company – whose goal is to be the third largest energyconcern in the world – being swallowed up by a competitor. Instead,he sees CMS Energy continuing in its aggressive role as a buyer ofassets.

Oklahoma producers are eyeing the pending purchase of Shellsubsidiary Transok by OGE Energy subsidiary Enogex with cautiouslyoptimistic eyes. While the sale would double Enogex’s pipelineholdings, it’s not clear to Oklahoma market participants whateffect the deal will have on competition.

Oklahoma producers are eyeing the pending purchase of Shell subsidiary Transok by OGE Energy subsidiary Enogex with cautiously optimistic eyes. While the sale would double Enogex’s pipeline holdings, it’s not clear to Oklahoma market participants what effect the deal will have on competition.