Initial

Duke Energy Field Services (DEFS), a wholly owned subsidiary ofDuke Energy Corp. and Phillips Petroleum Co., announced thepostponement of an initial public offering of common shares onFriday because of volatile stock market conditions. The companysaid shares will be offered to the public when market conditionsare more favorable. In the meantime, DEFS will continue to be owned69.7% by Duke Energy and 30.3% by Phillips.

FERC reaffirmed most of its initial decisions in Order 637 onrehearing last week, making minor adjustments to theright-of-first-refusal (ROFR), penalty and posting provisions inthe major natural gas rule. “…[O]n balance this is a solid,well-reasoned [rehearing] order that retains the character of theoriginal order,” said Commissioner William Massey.

FERC reaffirmed most of its initial decisions in Order 637 onrehearing yesterday, making minor adjustments toright-of-first-refusal (ROFR) and the reporting and postingrequirements of the major natural gas rule.

With the initial phase (regional meetings) of the formation ofregional transmission organizations (RTOs) wrapped up, FERCChairman James Hoecker last week gave the electric industry a”solid B” for its efforts. There haven’t been any “breakthroughs”yet, he reported, just “frank talk….. and widespread commitmentsto continue working toward a productive conclusion.”

Encouraged by an initial production of nearly 4 MMcf/d — froma well which three months later is still going strong at more than3 MMcf/d – Mitchell Energy & Development has started up afull-fledged infill drilling program at its East Texas NorthPersonville field.

NRG Energy Inc., a Minneapolis-based wholly owned subsidiary ofNorthern States Power Co., is going public and filed for anoffering of 18% of its common stock. The maximum aggregate offeringprice of the offer is $600 million. All proceeds will remain withNRG Energy.

Coralconnect.com, Coral Energy’s e-business web site, jumpedinto the online energy trading fray yesterday when it announced anexpansion of its services to include the buying and selling ofcertain gas contracts.

Initial reaction to the idea of consolidating the majorWashington D.C.-based energy trade groups under one umbrella seemsto be running from cold to warm, with some outright opposed to itand others at least willing to discuss it.

Initial reaction to the idea of consolidating the majorWashington D.C.-based energy trade groups under one umbrella seemsto be running from cold to warm, with some emphatically opposed toit and others at least willing to discuss it.