Half

Mirant Corp. reported Thursday it overstated its net income from 1999 through the first half of this year by $41 million, but it said an independent review of its books found no fraud was committed by the company. The Atlanta-based company also revealed that the Department of Justice is looking into its energy trading practices and certain accounting matters.

After chopping its power marketing staff in half this summer (see Power Market Today, June 24), Boise-based IDACORP Inc. on Tuesday decided to throw in the towel on natural gas marketing. The company also said it will terminate efforts to pursue a midstream natural gas development business. It will exit natural gas trading operations by the end of the first quarter of 2003, affecting a small Houston staff.

After half a century as the mainstay of natural gas transportation across Canada, TransCanada PipeLines Ltd. is charting a new course — out to sea, where it aims to launch an armada to serve offshore production projects.

After half a century as the mainstay of natural gas transportation across Canada, TransCanada PipeLines Ltd. is charting a new course — out to sea, where it aims to launch an armada to serve offshore production projects.

AltaCanada Energy Corp. said as of July 1, 2002, its established reserve base of crude oil and natural gas (proven plus one-half probable), including its 74% share of Alberta Selecta, is 1,184,000 boe. Of that, natural gas accounted for 64% of the total, while oil and liquids comprised 36%. Of the established reserves, 82% were classified as proven. AltaCanada contracted Gilbert Laustsen Jung Associates Ltd. (GLJ) of Calgary to prepare the reserves report. The initial report came out on Jan. 1, 2002. The report covers all of AltaCanada’s assets, including that of Alberta Selecta Corp., AltaCanada’s recently purchased 74% owned subsidiary, net of the property disposition announced on Aug. 12. Of those reserves, the company said it has 5,380 MMcf of proved and probable natural gas reserves and 1,396 mboe of proved and probable oil and liquid reserves. AltaCanada added that it has total proved producing reserves of 2,452 MMcf of gas and 763 Mboe of oil and liquids. The company said the discounted net present value of its reserves were estimated using average prices during the last six months of 2002 of C$3.92/Mcf of gas and C$29.25/bbl, and escalated according to GLJ’s July 2002 price forecast. The reserve life of AltaCanada’s proved and established reserves is 7.4 years and 8.7 years respectively.

Nicor Inc. saw its stock price nearly cut in half Friday morning after reporting a slew of bad news, some of which also spilled over on Dynegy Inc., a joint venture partner. Nicor, long considered a stable old-line utility investment, stunned the market by reversing all of its first quarter earnings and excluding all of its second quarter earnings for a rate program used by subsidiary Nicor Gas, which contributed to a 36% drop in second quarter earnings. The board of directors in turn moved into action, appointing a special, independent committee to investigate the subsidiary’s natural gas purchases, sales, transportation and storage.

Nicor Inc. saw its stock price nearly cut in half Friday morning after reporting a slew of bad news, some of which also spilled over on Dynegy Inc., a joint venture partner. Nicor, long considered a stable old-line utility investment, stunned the market by reversing all of its first quarter earnings and excluding all of its second quarter earnings for a rate program used by subsidiary Nicor Gas, which contributed to a 36% drop in second quarter earnings. The board of directors in turn moved into action, appointing a special, independent committee to investigate the subsidiary’s natural gas purchases, sales, transportation and storage.

Nicor Inc. saw its stock price nearly cut in half Friday morning after reporting a slew of bad news, some of which also spilled over on Dynegy Inc., a joint venture partner. Nicor, long considered a stable old-line utility investment, stunned the market by reversing all of its first quarter earnings and excluding all of its second quarter earnings for a rate program used by subsidiary Nicor Gas, which contributed to a 36% drop in second quarter earnings. The board of directors in turn moved into action, appointing a special, independent committee to investigate the subsidiary’s natural gas purchases, sales, transportation and storage.

Exelon Generation Co. LLC is buying the other half of Sithe New England Holdings LLC from Sithe Energies, Inc. for a $543 million note, plus the assumption of $1.15 billion of project debt. Exelon currently owns 49.9% of the company, which operates 4,400 MW of generation produced by seven gas or gas and oil fired power plants in New England.