Generators

A month has gone by since a special commission formed by FloridaGov. Jeb Bush recommended that the state break up its monopolyutilities and pave the way for competition in the power generationmarket, but still there has been no word from the legislature.There have been signs that the state senate will move much slowerthan previously expected on electric restructuring because ofgrowing awareness of what can happen when power planning goes awry.

The best way to ease the burden of high natural gas costs is tolet producers produce and not overly regulate generators, industryofficials told the Texas Railroad Commission this week. The TRC,which is preparing recommendations on the state’s natural gasmarket, will hear testimony from stakeholders again Thursday beforefinalizing its recommendations for state legislators.

Albany-based Energy East Corp., parent of New York StateElectric and Gas, is spending $1.4 billion to acquire RGS EnergyGroup, creating a Empire State powerhouse that would serve almostthree million customers, including half of those in upstate NewYork. The boards of both companies approved the deal last weekend.Energy East also will assume about $1 billion of RGS Energy debt.

As Pacific Gas & Electric Co. announced Friday it wasdefaulting on payments to power generators, the state of Californiawas issuing an RFP to bankers for a plan to issue bonds to raise upto $10 billion to finance power purchases for the PG&E utilityand SoCal Edison. The banks have until Wednesday to respond.

Despite market concerns about the ripple effect of California’senergy crisis on nonutility generators, Calpine Corp. on Fridayincreased its diluted earnings per share estimates for the quarterand year ended Dec. 31 to $0.30 and $1.05 per share, respectively.The company also increased its diluted earnings per share estimatefor this year to $1.25 per share. Calpine’s portfolio consists of50 operating power plants in 15 states totaling 4,900 MW. Calpinecurrently operates 26 power plants throughout northern Californiathat generate over 1,200 MW of power. About 600 MW are sold underFERC approved long-term contracts to Pacific Gas & Electric.The balance has been sold forward in the California market to adiversified portfolio of municipal and non-utility wholesalecustomers with strong credit ratings, the company said.

Energy Secretary Bill Richardson has extended for another weekhis earlier emergency order requiring generators and marketers tomake power available to the California market to avoid the threatof rolling blackouts. The order, which was first issued on Dec. 14,expired Tuesday at midnight (Pacific time). The new order willremain in effect until Dec. 27, unless modified.

While scores of pipelines are jockeying to supply gas to newpower generators in the Northeast market, PG&E Gas Transmission— the 7th largest pipeline in the nation — is turning itsattention to the rapidly growing generation markets in the PacificNorthwest and Texas, where the competition from rival pipelines ismuch less fierce.

While scores of pipelines are jockeying to supply gas to newpower generators in the Northeast market, PG&E Gas Transmission— the seventh largest pipeline in the nation – is turning itsattention to the rapidly growing generation markets in the PacificNorthwest and Texas, where the competition from rival pipelines ismuch less fierce.

Capstone Turbine Corp., developer and manufacturer ofmicroturbine power generators, says it has successfully tested a 30kW unit that can be used at the wellhead to generate power usingsour gas.