FERC will address the remaining gas policy changes on its platebefore the end of the year, Chairman James J. Hoecker saidyesterday, confirming what other commissioners have indicatedrecently. But some of the main dishes originally on the menuprobably will not show up at the table because most of the industryfound them indigestible, Hoecker told attendees at the 55th annualmeeting of the Interstate Natural Gas Association of America inAventura, FL.
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CMS Scores Deal to Manage Bank One’s Energy
In its second major energy services move in the past five days,CMS Marketing, Services and Trading, (CMS-MST) announced afive-year energy management agreement with Chicago-based Bank OneCorp., the nation’s fifth largest bank holding company. Neither thefinancial terms of the deal, nor Bank One’s energy output weredisclosed.
FERC Delays Sonat’s Rate Hike
Sonat’s proposed $82 million rate hike hit a major snag lastweek as FERC suspended any increase from occurring until March 1and called for a hearing where opposition to the proposal canpresent information.
Phillips Expands Presence into Powder River
Amidst major merger rumors, Phillips Petroleum focused on itsown operations yesterday, as it announced a 50% acquisition ofYates Petroleum Co.’s coalbed methane acreage in Wyoming’s PowderRiver Basin. Financial terms were not disclosed.
Breathitt: Six-Month Wait for Gas Initiatives Rule
Industry executives who were expecting FERC to act soon on majorpolicy initiatives addressing second generation Order 636 issueswill be sorely disappointed. Commissioner Linda Breathitt saidyesterday she didn’t expect to see any action on the notice ofproposed rulemaking (NOPR) and notice of inquiry (NOI) for possiblyanother six months.
Independents, Majors Fear NGA May Vanish on OCS
Both independent and major producers fear that FERC’s proposedrulemaking on the Outer Continental Shelf (OCS), which seeks toextend regulation to virtually all offshore gas pipelines under thelighter handed Outer Continental Shelf Lands Act (OCSLA), is thefirst step in a Commission plan to eventually abandon its NaturalGas Act regulation in the offshore.
AES Enters Retail Gas and Electric Arenas
AES Corp., a major electric generation and distribution company, continued to shift its focus onto downstream operations by forming a new subsidiary, Power Direct, to compete for electricity and natural gas retail customers in U.S. markets. Power Direct already is licensed to sell electricity in New Jersey and anticipates the receipt of a license in Pennsylvania by the end of August. The company plans to begin marketing in those states in the near future.
Calpine Makes Bid to Buy Sheridan Energy
Calpine Corp. offered $41 million in cash to purchaseHouston-based Sheridan Energy yesterday in an attempt to add amajor gas exploration and production arm to its extensive powergeneration assets. The offer breaks down to a $5.50 per shareproposal for Sheridan’s common stock. The tender offer is expectedto be completed in September of this year.
AES Enters Retail Gas and Electric Arenas
AES Corp., a major electric generation and distribution company,continued to shift its focus onto downstream operations by forminga new subsidiary, Power Direct, to compete for electricity andnatural gas retail customers in U.S. markets, the company saidyesterday. Power Direct is already licensed to sell electricity inNew Jersey and anticipates the receipt of a license in Pennsylvaniaby the end of August. The company plans to begin marketing in thosestates in the near future.
Producers Seek Stay of FERC’s Sea Robin Decision
Major gas producers have called for FERC to stay theeffectiveness of its controversial remand decision on Sea RobinPipeline pending rehearing, citing the “enormous impact” that itcould have on offshore production and transportation activities ifit’s implemented prior to being reviewed by the Commission.