Kansas

Although no panic buttons are being pushed yet, the Kansas CityBoard of Trade (KCBT) is getting increasingly worried about therecent lack of activity on its gas futures contract. There has beenno estimated volume since July 29, and as a result, open interesthas been stuck at 669 positions.

Gathering and storage assets of Oklahoma Natural Gas (ONG) andKansas Gas Service (KGS) are headed for deregulation, much to thechagrin of the Oklahoma Attorney General’s office. The move evengives pause to one of the three commissioners on the OklahomaCorporation Commission (OCC).

Shareholders of St. Joseph Light & Power Co. of Missouriapproved a merger with UtiliCorp United Inc. of Kansas City. Of theshares voted, 93.6% were in favor of the merger, while only 2.1%voted against. The approval vote represents 68.5% of all St. Josephshares outstanding. St. Joseph Light & Power share owners willreceive $23 of UtiliCorp common stock for each share of theircommon stock at the deal’s completion. St. Joseph’s stock closed at$20.6875 and UtiliCorp’s stock closed at $24.8125 Tuesday. The$190.6 million deal to create Missouri’s fourth largest gasdistributor and third largest electricity distributor was announcedin early March (See Daily GPI March 8, 1999). The companies nowseek regulatory approval, including the completion of a marketpower study required by both the Missouri Public Service Commissionand FERC, which should be finished in about 60 days. Steinbeckersaid. Light & Power serves 66,000 electric and gas customers inall or part of 10 northwest Missouri counties. UtiliCorp has morethan three million customers in eight states and in Canada,Australia, New Zealand and the United Kingdom.

Oklahoma Corporation Commission (OCC) staff, ONEOK Inc. and itssubsidiaries Oklahoma Natural Gas (ONG) and Kansas Gas Service(KGS) reached negotiated settlement of a number of interim issueson rates, unbundling of assets and competitive bidding for gasservices. The stipulated agreement must still be approved by OCCcommissioners. Once that happens, it will hasten wholesale and thenretail unbundling in the state.

Oklahoma Corporation Commission (OCC) staff, ONEOK Inc. and itssubsidiaries Oklahoma Natural Gas (ONG) and Kansas Gas Service(KGS) reached negotiated settlement of a number of interim issueson rates, unbundling of assets and competitive bidding for gasservices. The stipulated agreement must still be approved by OCCcommissioners. Once that happens, it will hasten wholesale and thenretail unbundling in the state.

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The Commodity Futures Trading Commission approved a change inthe Kansas City Board of Trade’s last trading day for its westernnatural gas futures contract that will place KCBT contractexpiration on the same day as Henry Hub futures go off the board atthe New York Mercantile Exchange. The last trading day will now bethe third business day prior to the first day of the deliverymonth. Formerly, it was the second business day prior to the firstday of the delivery month.

The Commodity Futures Trading Commission has approved a proposalby the Kansas City Board of trade to increase the number ofconsecutive Western Natural Gas contract months listed on theexchange to 36 from 18. The additional months will be listed fortrade beginning today.

The Kansas City Board of Trade expects to fan the flames ofinterest in its Western Natural Gas Futures Contract by offering asecond round of two-year gas trading permits for $1,000 each plusapplication fees of $300. Twenty trading permits are being offeredto non-KCBT members. Currently about 15-20 traders are active inthe gas pit so the offering potentially could double the exchange’sgas trading activity.