California’s State Auditor General formally began contacting the state’s nonprofit electric grid operator (Cal-ISO) and wholesale spot power market (Cal-PX) Wednesday in a state legislature-ordered investigation that could lead to the merger of the two entities. The state’s electricity price spikes and supply shortfall this summer prompted legislative action in August ordering the probe.
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CA Joint Legislative Audit of ISO/PX Begins
California’s State Auditor General formally began contacting thestate’s nonprofit electric grid operator (Cal-ISO) and wholesalespot power market (Cal-PX) Wednesday in a state legislature-orderedinvestigation that could lead to the merger of the two entities.The state’s electricity price spikes and supply shortfall thissummer prompted legislative action in August ordering the probe.
Neighbors FirstEnergy, GPU, Combine
Surprise! FirstEnergy of Akron, OH and Morristown, NJ-based GPUInc. formally announced that Monday’s widely circulated and detailedrumors of a merger were indeed true (see Daily GPI, Aug. 8). In meetings yesterday, bothcompanies’ boards of directors unanimously approved the merger underwhich FirstEnergy would acquire all of GPU’s outstanding shares ofcommon stock for about $4.5 billion in cash and common stock.
Enron Bails Out of El Paso Block II Contract
Enron North America Corp. has formally notified El Paso NaturalGas that it is bailing out of its Block II capacity agreement forabout 600 MMcf/d of firm capacity because it asserts the conditionsoriginally spelled out in its contract with the pipeline “have notbeen satisfactorily completed.”
MidAmerican, CalEnergy Get IUB Nod, Close Merger
CalEnergy Co. Inc. and MidAmerican Energy Holdings Co. formallyclosed their merger Friday, marking the first time that anindependent power producer has acquired a traditional gas andelectric utility. The Iowa Utilities Board’s (IUB) recent approvalof the deal cleared the way for it to be completed.
San Diego Putting Power Plants Up for Sale
San Diego Gas and Electric Co. is formally asking for nonbindingexpressions of interest for two fossil-fuel power plants and 17combustion turbines by Sept. 10 as the start of a sales plan forits generation assets for which it expects to gain stateregulators’ approval by that same time. Eventually, it expects tosell nearly 2,000 MW of generating capacity by the end of the year,according to a company spokesperson.
Viking to Pursue Its Own Pipeline Expansion
Viking Gas Transmission formally dropped out of the VikingVoyageur partnership earlier this week and now plans to test themarket for a separate, smaller expansion of its existing system,VGT President Greg Palmer, a former spokesman for Voyageur, saidyesterday. VGT intends to hold an open season to collect customerinterest in the project this summer.
Voyageur Expansion Project in Doubt
Viking Gas Transmission, a partner in the Viking Voyageurpipeline expansion project, formally confirmed it has been unableto secure sufficient shipper support for the proposed expansion andis “reviewing its alternatives” on the project with its partners,TransCanada PipeLines and Nicor.
PacifiCorp Ahead in Bidding War
A bidding war has erupted over British electric company TheEnergy Group with Texas Utilities formally entering the battleMonday with an offer of 810 pence (US$13.37) for each Energy Groupshare – 45 pence more than that of the initial bidder PacifiCorp.The Portland, OR firm was not to be out-penced, however, coming inwith a new offer of 820 pence. PacifiCorp said it has acquired45,987,079 EG shares, representing approximately 8.8% of theBritish Firm’s outstanding share capital.