Major price spikes could recur in the Midwest power market thissummer, according to a key consulting group. “I would say it’s like50-50 whether we’re going to have very gross spikes there,” saidJudah Rose, vice president of wholesale power for ICF KaiserInternational Inc. “It looks like we may luck out, but it’s stillvery, very dicey” in the Midwest region. A major factor is “no oneknows who’s in charge of reliability in the Midwest,” he toldGasMart/Power ’99 in Dallas. Rose believes the federal governmentneeds to intervene to settle the issue once and for all. “There isnothing more federal than the intersected power grid. The federalgovernment needs.to set up who’s in charge of reliability, figureout what the rules are.”
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Columbia Extends Deadline a Week for CNG Bid
In response to a data request from CNG’s board, Columbia EnergyGroup extended its deadline to May 10 for the CNG board to respondto its unsolicited merger proposal. CNG asked for additionalinformation on a two-way collar mechanism in Columbia’s $6.7billion bid for the company (see NGI, April 26).
Warm Weather Cooled Some LDC 1Q Earnings
Atlanta Gas Light was one of the biggest losers among a group of37 LDCs reporting first quarter earnings. AGL’s net income was offa whopping 46% from the first quarter of 1998. PaineWebber notedthe significant drop was due mainly to a change in rate design thattook effect in July 1998 when the company unbundled.
Columbia Extends Deadline a Week for CNG Bid
Columbia Energy Group said yesterday it is extending the deadlineby seven days to May 10 on its merger proposal with ConsolidatedNatural Gas in response to a data request from CNG’s board. CNG askedfor additional information on a two-way collar mechanism in Columbia’sunsolicited $6.7 billion bid for the company (see Daily GPI, April 20).
Columbia, Dominion Battle for CNG
By the close of trading last Friday, Columbia Energy Group’s$6.7 billion unsolicited bid for Consolidated Natural Gas still hadthe edge on Dominion Resources’ all stock offer worth $5.9 billion,but Dominion’s stock price was gaining ground.
Hammered by Prices, TransTexas Files Ch. 11
TransTexas Gas Corp. of Houston said last week, followingdiscussions with a group representing a majority of its parentcompany’s note holders, it voluntarily filed for Chapter 11bankruptcy. The company said it believes the filing will allow forcompletion of its recapitalization involving TransTexas and parent,TransAmerican Energy Corp. Details of the recapitalization plan areexpected to be filed in bankruptcy court within 30 days.
Hammered by Prices, TransTexas Files Ch. 11
TransTexas Gas Corp. of Houston said following discussions witha group representing a majority of its parent company’s noteholders it voluntarily filed for Chapter 11 bankruptcy. The companysaid it believes the filing will allow for completion of itsrecapitalization involving TransTexas and parent, TransAmericanEnergy Corp. Details of the recapitalization plan are expected tobe filed in bankruptcy court within 30 days.
Columbia Results Improve, But E&P, Marketing Struggle
Columbia Energy Group barely overcame warmer than normaltemperatures, weak gas prices and higher marketing costs during thefirst quarter to post a 2% increase in earnings. The companyreported first quarter 1999 earnings of $150.4 million, or $1.81per share, up from $147.5 million or $1.77 per share in 1Q98.
BGE Okays Launch of Constellation Energy
BGE shareholders approved the formation of holding companyConstellation Energy Group Inc. Constellation Energy is now set tobe launched May 3, trading under the CEG ticker symbol on the NewYork Stock Exchange. Constellation Energy will be the parentcompany that holds BGE’s common stock and the common stock of allof BGE’s current subsidiaries. BGE will become a sibling to itscurrent subsidiaries and will remain regulated by the MarylandPublic Service Commission.
Duke Trading Arm Expects Stronger Gas Prices
Brad Karp, president of Duke Energy Trading and Marketing, tolda group of producers in Houston Thursday that his company is prettybullish on the gas price outlook long term.