Generate

Moody’s Investors Service downgraded the ratings of Port Huron, MI-based gas utility company SEMCO Energy Inc. to Ba2 from Baa3 and said it was continuing a review for possible further downgrade because of the company’s “very high leverage, weak capitalization, low profitability and cash flow relative to its debt and refinancing risk.” About $534 million in debt was affected.

Moody’s Investors Service downgraded the ratings of Port Huron, MI-based gas utility company SEMCO Energy Inc. to Ba2 from Baa3 and said it was continuing a review for possible further downgrade because of the company’s “very high leverage, weak capitalization, low profitability and cash flow relative to its debt and refinancing risk.” About $534 million in debt was affected.

Ohio could eventually become the home of two new coal-fired power plants that combined would generate over 2,000 MW, NGI has learned. But a spokesperson for the Ohio Public Utility Commission (PUC) last Wednesday said that until the company or companies considering the plants actually announce an intention to construct the facilities, the state commission won’t disclose any additional information.

Ongoing concerns about the level of cash flow Dynegy Inc. will be able to generate with its restructuring led Moody’s Investors Service to downgrade the Houston company and its subsidiaries late Monday.

A moderation of recently severe winter weather in several market areas is still on the way, but the cold retained enough grip Tuesday to spur small gains of about a nickel or less at a majority of points. Citygates in the Northeast were joined by Florida deliveries in recording larger advances, while western points were mostly flat to 3-4 cents lower.

A rebound from last week’s swing price weakness came sooner thanmany traders expected, but it happened for precisely the reasonthey had anticipated. “When we finally get some cold weather,prices will start turning upward again” summarized the conventionalwisdom of a number of traders last week.

The assets serve all major metropolitan areas, the largest industrialload centers, and numerous natural gas trading hubs, El Paso said. Theyare also well positioned to serve many of the state’s existing and plannedgas-fired electric generation facilities. Included in the transaction are8,500 miles of natural gas transmission pipelines that transport approximately2.8 Bcf/d, nine processing plants that currently process 1.5 Bcf/d, anda 7.2 Bcf natural gas storage field. The transaction also includes significantnatural gas liquids pipelines and fractionation facilities.

After three years of attempts to generate profitability from itsTexas gathering and liquids businesses, PG&E National EnergyGroup finally threw in the towel yesterday and announced the saleof these assets to El Paso Energy Field Services for $840 millionin stock and debt.

In an attempt to decide between buying third-party capacity orbuilding the facilities to generate the capacity itself, FloridaPower Corp. issued an RFP yesterday, seeking bids from companiesinterested in generating 530 MW for the electric company beginningin Nov. 2003.