Fiscal

In its “Strategic Plan for Fiscal Years 2003-2008” submitted to Congress, the Federal Energy Regulatory Commission outlined some of the new programs that it is planning to help identify incidents of market-power abuse more quickly and ensure more widespread compliance by energy companies with the agency rules and regulations.

Houston-based Hanover Compressor Co., which has already restated the financial results for its last seven fiscal quarters, said its annual reports since going public in 1997 have contained an “error” that makes it appear the company built less equipment than it actually has. The company makes pumps that move natural gas and oil through pipelines and from wells. CFO John Jackson said the company ” inadvertently” omitted the amount of equipment made at an Oklahoma factory, and not including that output, makes it appear that fabrication costs for some compressors were higher than they actually were, he said. Jackson said the error will be corrected in this year’s annual report, and said the correction would not affect prior revenue or earnings. The annual report is expected to be released in early April. Jackson succeeded former CFO William Goldberg in February after Hanover said it would restate its previous earnings as far back as January 2000.

Facing the prospect of a fiscal crisis flowing from its electricity woes, a majority of the five-member California Public Utilities Commission last week rejected the governor’s proposal for a rate agreement with the state power-buying agency, the Department of Water Resources (DWR). The rate agreement had been billed as being essential to a future state bond sale backed by retail utility rates. The vote was 4-1, leaving a major question mark of how the state will pay for its power-buying spree.

PPL Global, a subsidiary of Pennsylvania based PPL Corp.announced plans to build a 600 MW natural gas-fired generationplant on Long Island, NY. The proposed $300 million facility willbe located on a 15 acre site in Smithtown, which is currently beingused as a sand and gravel operation. PPL Global is planning tobuild up to 12 gas-fired units for this project. “With thecontinued growth of Long Island, there is an acknowledged need foradditional competitive electricity sources. These proposed unitswill provide significant additional electricity to these residentsin a way that is environmentally and aesthetically sensitive forarea residents and cost effective for PPL Global,” said PaulChampagne, PPL Global president. The facility site is positionednear the Iroquois pipeline, as well as other major transmissionlines. Pending approvals from state and local agencies,ground-breaking is expected to begin in 2001, with an approximateoperational date of June, 2002.

In a fiscal year 1999 performance report card submitted toCongress and the White House, the Federal Energy RegulatoryCommission gave itself high marks for furthering competition in thenatural gas and electricity markets, citing the mega gas rule(Order 637), the RTO decision (Order 2000) and its FERC Firstinitiative as proof of its progress.

In a fiscal year 1999 performance report card submitted toCongress and the White House, the Federal Energy RegulatoryCommission gave itself high marks for furthering competition in thenatural gas and electricity markets last year, citing the mega gasrule (Order 637), the RTO decision (Order 2000) and its FERC Firstinitiative as proof of its progress.

California Gov. Gray Davis’ $68 billion fiscal 2001 budgetproposal unveiled this week includes little or no emphasis onenergy issues, although some of the stated concerns about”infrastructure” may spill over into reliability issues in the gasand electricity transmission/distribution industries. For energyindustry observers there are mostly unanswered questions, includingpeople within state government.

AGL Resources Inc. said it expects operating earnings for itsfourth quarter of fiscal 1999 to be lower than analysts’ estimates,although the company expects a modest profit from operations forthe quarter. Current estimates have the company earning $0.17/shareduring the quarter ending Sept. 30 compared to $0.12/share lastquarter.

AGL Resources Inc. said it expects operating earnings for itsfourth quarter of fiscal 1999 to be lower than analysts’ estimates,although the company expects a modest profit from operations forthe quarter. Current estimates have the company earning $0.17/shareduring the quarter ending Sept. 30 compared to $0.12/share lastquarter.