Financially

Financially troubled Allegheny Energy Inc. announced Thursday that it sold two affiliates — Fellon-McCord & Associates and Alliance Energy Services LLC — to Constellation Energy Group for an estimated $22.3 million.

In a reprise of action two months ago, PG&E Corp.’s financially struggling National Energy Group (NEG) announced late last Thursday that it agreed with lenders to provide funding for two of the merchant energy developer’s new electric generating plants — the 840 MW natural gas/fuel oil-fired Lake Road plant in Connecticut and 1,121 MW gas-fired, combined cycle La Paloma unit in California.

A committee at the New York Mercantile Exchange (NYMEX) is mulling draft rules for a new set of financially settled electricity contracts that will be linked to PJM Interconnection’s locational marginal prices (LMP).

Reliant Energy Services (RES), the marketing arm of financially troubled Reliant Resources, said Florida Gas Transmission (FGT) is demanding that it pay $36.7 million upfront before the pipeline will provide service under its latest expansion project, a move that Reliant Energy claims is a clear violation of the credit provisions in FGT’s existing transportation tariff.

Reliant Energy Services (RES), the marketing arm of financially troubled Reliant Resources, said Florida Gas Transmission (FGT) is demanding that it pay $36.7 million upfront before the pipeline will provide service under its latest expansion project, a move that Reliant Energy claims is a clear violation of FGT’s existing transportation tariff.

CenterPoint Energy Inc. (formerly Reliant Energy) is committed to reducing its debt and becoming more financially flexible. However, the credit ratings downgrade by Moody’s Investors Services to “junk” status points out the numerous financial problems still ahead for the Houston-based utility.

While many energy companies struggled financially in the third quarter, Kinder Morgan clearly did not. The fee-based liquids and gas transportation and terminals businesses of Kinder Morgan Inc. (KMI) and its master limited partnership, Kinder Morgan Energy Partners LP (KMP), posted more than 35% earnings growth.

As part of its ongoing effort to get back on its feet financially, Williams said it has signed a definitive agreement to sell its Central natural gas pipeline to Southern Star Central Corp. fo r total consideration of $555 million. Southern Star is owned by AIG Highstar Capital, LP, a private equity fund sponsored by American International Group, Inc.

As part of its ongoing effort to get back on its feet financially, Williams said Monday that it has signed a definitive agreement to sell its Central natural gas pipeline to Southern Star Central Corp. for total consideration of $555 million. Southern Star is owned by AIG Highstar Capital, LP., a private equity fund sponsored by American International Group, Inc.