Gave

The Iowa Utilities Board (IUB) gave its blessing to the proposedmerger of MidAmerican Energy Holdings Co. and CalEnergy Co. Inc.last week, removing the final regulatory hurdle to a transactionthat will combine and complement the assets and expertise of a U.S.utility with those of a United Kingdom utility. The deal isexpected to be completedon Friday.

FERC last week gave Petal Gas Storage the go-ahead to double thecertificated capacity of its storage facilities in Mississippi to10.4 Bcf. Petal Gas would accomplish this by drilling, leaching anddeveloping a second underground salt dome storage cavern identicalto its existing cavern. The proposed storage cavern would have thesame certificated capacity as the existing cavern (5.2 Bcf), andboth would have a combined actual working gas capacity of 5.8 Bcf.

FERC last week gave the go-ahead for a mostly compressionupgrade that would add 315,218 Dth/d to Columbia Gulf Transmission,restoring its system to its original certificated capacity leveland then some.

FERC earlier this week gave the go-ahead to a compressionupgrade that would add 315,218 Dth/d of firm transportationcapacity to Columbia Gulf Transmission, bringing its system up toits certificated capacity level and then some.

FERC last week gave the green light to the merger between NewYork-based Consolidated Edison Inc. and neighboring Orange andRockland Utilities (O&ampR), moving them a step closer to becomingone of the most formidable electric and gas utility competitors inthe east. The deal, which has been valued at $790 million, isexpected to be completed by mid-year – assuming the regulatoryapprovals of other federal and state agencies are forthcoming.

The futures market gave the impression it was heading higheryesterday when February opened at Tuesday’s high and quickly tradedto $1.85. But the selling dried up, leaving the market vulnerableto light selling for the rest of the session. The February contractclosed down 5.1 cents for the day at $1.77.

The Midwest snowstorm that gave such a lift to the first dailyprices of 1999 was being repeated to a lesser degree over theweekend and Monday, but this time there were no gains of 20 centsor more as a result. Instead, most of the cash market was flat todown as much as a dime Monday. Still-massive storage inventories,along with forecasts of warming weather in the North and a fallingscreen, were cited as reasons for the softness. Several sources described trading action as subdued.

The U.S. was getting colder Thursday, but that fact gave nosupport to cash prices, which mostly fell between a nickel and 15cents. A futures drop of less than a penny was too small to matter,sources said, but the second straight report of storage injections,combined with forecasts of warmer weather next week and a drop inJanuary crude oil futures to less than $11/barrel, was too much fortraders to ignore.

Canada’s National Energy Board gave natural-gas exporters alicense to grow by approving the Alliance Pipeline Project, but theboard included a warning of the risks of excess capacity: pricecuts and strained supplies.