While incumbents in the natural gas and power electronic tradingfraternity were predicting eventual fall-out and consolidation inthis exploding technology sector (see related story) a new entry— The Energy Consortium, including American Electric Power,Aquila, El Paso, and Reliant Energy and Southern Company EnergyMarketing — entered the fray last week.
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Top Ten Players Forming e-Trading Group
The Energy Consortium – that’s American Electric Power, AquilaEnergy, Duke Energy, El Paso Energy, Reliant Energy and SouthernCompany Energy Marketing – is the latest entry to stake out aposition in the electronic trading sweepstakes.
FERC OKs AEP-CSW Merger Forming Largest Electric Utility
American Electric Power (AEP) and Central and South West Corp.(CSW) moved one step closer to becoming the largest electricutility last week when FERC approved the $6 billion marriage of thetwo electric powerhouses. It imposed some conditions on the mergerdeal, but the companies said they weren’t anything they couldn’tlive with.
CMS Brings in New Partners for Trunkline Conversion
CMS Energy Corp., Marathon Ashland Petroleum LLC, and TEPPCOPartners LP. are forming a limited liability company to own andoperate part of Trunkline’s mainline that is being converted totransport refined products from the Gulf Coast region to Illinois.Each of the companies will own a one-third interest in the venture.CMS already is seeking FERC approval to convert the 720-mileportion of its pipeline from gas to refined products service.Conversion of the pipeline to liquids service is expected by theend of 2001.
AES Enters Retail Gas and Electric Arenas
AES Corp., a major electric generation and distribution company, continued to shift its focus onto downstream operations by forming a new subsidiary, Power Direct, to compete for electricity and natural gas retail customers in U.S. markets. Power Direct already is licensed to sell electricity in New Jersey and anticipates the receipt of a license in Pennsylvania by the end of August. The company plans to begin marketing in those states in the near future.
AES Enters Retail Gas and Electric Arenas
AES Corp., a major electric generation and distribution company,continued to shift its focus onto downstream operations by forminga new subsidiary, Power Direct, to compete for electricity andnatural gas retail customers in U.S. markets, the company saidyesterday. Power Direct is already licensed to sell electricity inNew Jersey and anticipates the receipt of a license in Pennsylvaniaby the end of August. The company plans to begin marketing in thosestates in the near future.
GRI, EPRI Form Partnership with DMJM
The Gas Research Institute (GRI) and the Electric Power ResearchInstitute (EPRI) are forming a partnership, called Global EnergyPartners, with engineering/large project management firm DMJM tooffer program management services to public agencies that fundpublic-benefit energy programs aimed at promoting energyefficiency.
Amber AEC Agree to Merge, Forming Huge Independent
Amber Energy’s board has accepted a revised merger offer fromAlberta Energy Co. (AEC) and said it will cease pursuing the saleof some of its midstream assets. AEC raised its offer for Amber by50 cents a share to $7.50, or 0.225 AEC shares for each Ambercommon share, and agreed to an aggregate limit of 4.5 millionshares, which is up from 3 million. Together, the two gas companieshold the largest gas reserve base of any publicly-owned oil and gascompany in Canada with 4 Tcf of reserves, and create one of thelargest gas producers north of the border with about 900 MMcf/d ofgas production, said AEC President and CEO Gwyn Morgan.
Stone & Webster, Sonat Combine Services
Stone & Webster and Sonat Marketing Company L.P., haveannounced they are forming a 50/50 joint venture to provide largecustomers with a variety of bundled energy management services,including building or upgrading power and steam generationequipment, commodity supply, portfolio and risk management,metering, billing, operations and maintenance, as well as selectedasset ownership.
Duke, Primary Marketing On-Site Generation
Duke Energy subsidiary Duke Energy Industrial Asset Developmentand Primary Energy, a subsidiary of NIPSCO Industries, are formingan alliance to market on-site generation to energy-intensivebusinesses in Alabama, Louisiana and Mississippi.