Improvements

As the myriad of regulatory issues continues to be resolved, a Standard & Poor’s (S&P) natural gas analyst predicted last week that there will be increasingly positive interest from creditors and investors toward energy merchants. Meanwhile, Fitch Ratings Thursday upgraded Dynegy Inc.’s outlook to “stable,” and S&P Friday removed The Williams Cos. Inc. from its CreditWatch list.

While California’s electricity market has seen “dramatic improvements” since the dark days of the state’s power crisis in 2000-2001, thanks to the stabilization of prices and adequate supplies, the market remains “fundamentally frail,” an official with the California Independent System Operator (Cal-ISO) told federal regulators last Wednesday.

Northwest Pipeline put shippers on notice last week that itplans to undertake a system enhancement program and will begintaking requests for a pipeline expansion project. The enhancementprogram, which will involve adding pipeline looping andcompression, is designed in part to resolve a supply displacementproblem stemming from an expiring contract.

Northwest Pipeline put shippers on notice last week that itplans to undertake a system enhancement program and will begintaking requests for a pipeline expansion project. The enhancementprogram, which will involve adding pipeline looping andcompression, is designed in part to resolve a supply displacementproblem stemming from an expiring contract.

In reporting record third quarter improvements, including an 88%increase in earnings per share and a 16% increase in net income,Dynegy CEO Chuck Watson yesterday highlighted an aggressive powergeneration plan that will become the “engine for the growth of ourearnings for the future.”

Duke Energy and El Paso Energy proudly put their third quarterearnings on display yesterday, touting improvements in unregulatedservices and downplaying drops in their respective gas transmissionperformances.

NiSource said it filed the necessary information under theHart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 with theFederal Trade Commission and Department of Justice regarding itstender offer for all of Columbia Energy Group’s common shares. CEOGary Neale said it “sends a serious message to Columbia that we arecommitted to completing this transaction and that we are confidentin our ability to secure the necessary regulatory approvals. Wehave said throughout that we believe the regulatory approvalprocess can be completed within six to nine months if we worktogether. HSR clearance is an important first step, and one thatconfirms our commitment to move forward on all fronts of thistransaction.” NiSource is offering $68/share for Columbia stock.Columbia’s board has said the company is not for sale and isfighting the hostile takeover attempt (See Daily GPI July 16, July15, June 25, June 11 and June 8).

Nine months after acquiring MidCon Corp., KN Energy citedimprovements in all areas of operations and reported a markedincrease in earnings for the first three quarters of 1998.