Filing

In the next 10 years, Florida Power & Light Co. (FPL) expects to increase its generating capacity by 32% through expansions and new facilities, according to a filing with the Florida Public Service Commission (PSC) last week. FPL’s plans for new capacity, which include the Martin and Manatee expansion (see Power Market Today, Jan. 16 ), call for the use of natural gas technology in highly efficient combined-cycle generating units at several existing power plant sites. The next most likely sites for future expansion are FPL facilities in Cape Canaveral, Riviera, Port Everglades and the Midway substation.

Following Enron Corp.’s inevitable Chapter 11 bankruptcy filing on Sunday, reports of exposure to possible losses due to the energy giant’s failure continue to come in from companies and financial institutions around the world, reflecting the broad reach both of the company’s business and its stock.

Anxious Houston-based employees Friday were waiting for formal news that their employer, Enron Corp., had filed for bankruptcy, expected to be the largest in U.S. history, and also to learn whether layoffs will begin in the United States as they have in Europe. Across the country, others kept an eye on whether Enron would file a lawsuit against its short-term merger partner Dynegy Corp. for backing out of the transaction last week. Meanwhile, companies that had once dealt with the former trend-setting energy trader continued tallying their own expected losses should Enron go under, and analysts began looking at the pieces, attempting to comprehend and explain a situation gone terribly wrong.

With calls for more details in its bankruptcy court filing of a company-wide reorganization, Pacific Gas and Electric Co. last week went on the offensive in trying to clarify what it called “myths” about its proposal. A major myth or criticism of the plan unveiled last month is that the parent company, PG&E Corp., is trying to hide major generation and transmission assets from state regulation, for which PG&E officials openly have expressed a lot of distaste this year.

Enron Corp. fired back at California yesterday, filing a lawsuit against a state Senate committee to block a subpoena for internal documents covering virtually its “entire western marketing and trading operations.” The suit against the Senate Select Committee to Investigate Price Manipulation of the Wholesale Energy Market was filed in the Superior Court of the State of California in Sacramento.

El Paso Energy Corp. will sell its 35% stake in Oasis Pipe Line,a 1 Bcf/d line in Texas, according to a disclosure in a securitiesfiling made last week. El Paso said that the sale, which wasnegotiated in October, would result in a $20 million loss. The36-inch intrastate gas line runs 608 miles from the West Texas Wahamarket to the Katy hub outside of Houston. The pipeline provides alink between El Paso Natural Gas and Tennessee Gas Pipeline, and isthe principal route for Permian Basin supplies to access theHouston Ship Channel. Oasis completed a substantial upgrade in1998, installing 9,400 horsepower of compression, and newinterconnects to increase deliveries to eastern markets. DowHydrocarbons and Aquila Energy, a unit of Utilicorp United, alsoown stakes in the line. Along with its 35% ownership, Aquila alsohas firm transport rights on 280,000 Mcf/d. Before El Paso’s saleis complete, it still needs approvals from the Federal TradeCommission and the Texas Attorney General.

Kern River Gas Transmission, a subsidiary of Williams, said itplanned on filing an application yesterday with FERC to add 124,500Dth/d of additional firm transportation capacity to its 922-milepipeline system. The company said the California Expansion Projectwill not only provide additional natural gas capacity from Wyomingto markets in California, but also will provide an opportunity forWilliams to offer significantly reduced rates for firmtransportation based on the recent approval by FERC of Kern River’sExtended Term Rate Program.

El Paso Energy Corp. will sell its 35% stake in Oasis Pipe Line,a 1 Bcf/d line in Texas, according to a disclosure in a securitiesfiling made last week. El Paso said that the sale, which wasnegotiated in October, would result in a $20 million loss.

A month after Nicor Gas’ filing to expand its Customer Selectchoice program to all of its customers was suspended by theIllinois Commerce Commission (ICC), it announced it has received anunanimous approval from the same governing body to continue itspilot program for 2001.