Joins

CMS Energy Corp. has thrown out its speculative energy trading business and with it, cut 50 energy traders, about 25% of the workforce, in a plan designed to clean the balance sheet and improve cash flow. The Dearborn, MI-based company also revised its earnings outlook for 2002, and is selling more assets as it continues a “back-to-basics” program centered around its regulated assets in North America.

Cinergy Corp. said that it has joined in the formation of an energy industry committee made up of chief risk officers who will identify best practices in risk management. Companies participating in the Committee of CROs, which was formed late last month, said the organization was made necessary by the rapid growth and increasing financial pressures in the merchant energy industry in the United States (see NGI, June 3).

Gas storage development in the Gulf Coast region has reached a feverish pace, with multiple new projects planned in Mississippi and Louisiana to serve strong power generation and traditional demand growth in the Southeast and other regions. Gulf South Pipeline announced plans Tuesday to join the frenzy with its proposed Magnolia Gas Storage project, which will be located near Napoleonville, LA.

Phillips Petroleum Co., which holds down fifth place on the list of oil and gas companies worldwide, said its second quarter profits were up more than expected, jumping 37% on crude oil, natural gas and gasoline commodity pricing. Phillips, in the process of acquiring Tosco Corp., said income excluding special items was up to $601 million, or $2.33 a share, compared with $439 million, or $1.72 a share for the second quarter of 2000. However, revenues were lower, falling to $5 billion from $5.4 billion a year ago.

Former Pennsylvania regulator Nora Mead Brownell was sworn in as a FERC commissioner last Tuesday, filling out the ranks of the five-member federal agency. Brownell attended Wednesday’s regular open FERC meeting, but did not vote.

Former Pennsylvania regulator Nora Mead Brownell was sworn in as a FERC commissioner yesterday, filling out the ranks of the five-member federal agency. Brownell will be attending today’s regular open FERC meeting, although she has said she will not be voting.

Prices continued to soar Tuesday but generally by smalleramounts than on Monday in the Gulf Coast, Midcontinent/Midwest,Appalachia and Southwest/Rockies. However, bigger gains at thefrigid Northeast citygates allowed them to join California and thePacific Northwest in measuring average pricing in four digits.

Conoco subsidiary, Conoco Global Power (CGP) has tappedsubsidiaries of NRG Energy to help own and operate SRW CogenerationLP, and its holdings. NRG Energy purchased a 50% stake in thecompany at an undisclosed cost. Currently, the partnership owns,and will operate a $260 million power facility near Orange, TX, nowunder construction.

Conoco subsidiary, Conoco Global Power (CGP) is selling a 50%stake in SRW Cogeneration Ltd. Partnership to subsidiaries of NRGEnergy. Currently, the partnership owns, and will operate a $260million power facility near Orange, TX, now under construction.