Making

Industry Briefs

The performance of Dynegy’s gas liquids business during thesecond quarter indicates the market is finally making aturn-around. Operating income from the liquids division grew 41% to$54.9 million, Dynegy reported. Its power marketing and generationdivision, including operating margin and equity earnings from jointventure power projects, also showed continued improvement with 28%growth in operating income to $56.8 million. But gas marketingsuffered a 31% decline in operating income to $21.8 millionprimarily because of “weak market conditions” in Europe, thecompany said. Dynegy posted a 19% increase in net income during thesecond quarter to $28 million compared with $23.4 million in 2Q98.It sold a total of 9.2 Bcf/d of gas (6.1 Bcf/d domestically), upfrom 8.2 Bcf/d in 2Q98, and sold 17.4 million MWh of power, down40% from the 28.9 million MWh sold in 2Q98. Dynegy also showed ahigh retail marketing loss of $2.4 million compared with $600,000in 2Q98 because of the expansion of its SouthStar retail marketingalliance with AGL Resources and Piedmont Natural Gas in Georgia.SouthStar markets gas under the name Georgia Natural Gas and hasbuilt one of the largest market shares in Georgia. Dynegyattributed the mounting losses to increased advertising inpreparation for the Oct. 1 deadline for retail customers to switchto buying gas from marketers.

July 28, 1999

CA Gas Restructuring Inching Along

California regulators are scheduled to move natural gas industryrestructuring a few more notches forward this week, but not withoutmaking still more modifications as suggested by additional commentsfiled last week.

June 21, 1999

California Gas Restructuring Inching Along

California regulators are scheduled to move natural gas industryrestructuring a few more notches forward this week, but not withoutmaking still more modifications as suggested by additional commentsfiled last week.

June 21, 1999

Dominion, CNG Plan Up to 2,400 MW of New Power

Even before their merger is consummated, Dominion Resources andConsolidated Natural Gas are making plans to begin development offour gas-fired peaking power generation facilities along CNGTransmission in Ohio, Pennsylvania and West Virginia. Thefacilities represent up to $800 million in local investment. Allfour plants are expected to be in service in time for peak summerdemand in 2002.

May 31, 1999

Dominion, CNG Plan Up to 2,400 MW of New Power

Even before their merger is consummated, Dominion Resources andConsolidated Natural Gas are making plans to begin development offour gas-fired electric power generation facilities along CNGTransmission in Ohio, Pennsylvania and West Virginia. Thefacilities represent up to $800 million in local investment. Allfour plants are expected to be in service in time for peak summerdemand in 2002.

May 26, 1999

Texas Electric Deregulation Plodding Along

Texas’ electricity markets would open to competition Jan. 1,2002 if a bill making its way through the state legislature passesthe senate. An earlier version of the bill passed the senate, butanother vote is required there since the legislation changed in thehouse. The governor has voiced his support for deregulation.

May 24, 1999

WRI, KCP&L Merger Set For Hearing

FERC last week put off making a final decision on the merger ofTopeka, KS-based Western Resources Inc. and Kansas City Power &ampLight (KCP&ampL), citing potential competitive concerns. It set theproposed combination of the Midwest electric utilities for anevidentiary hearing on issues involving market power and customerprotection.

April 5, 1999

CA Electric Deregulation A Bust for Consumers

One year into electric deregulation, the benefits promisedconsumers by the California legislature have failed to materialize,making monopoly utilities the primary winners in the state’sderegulation game, according to San Francisco-based The UtilityReform Network (TURN), the state’s major utility consumer group.

March 29, 1999

Dynegy Adds to SE Power Portfolio

Dynegy recently announced construction plans for two separate500 MW facilities in the Southeast, making a reality of its promiseto increase its power asset portfolio in the area. With thesefacilities, one located in Heard County, GA and the other locatedin Oldham County, KY, Dynegy will increase its Southeast energyassets from three to five.

March 22, 1999

People

Daniel Rappaport was elected to a fourth two-year term asNymex’s chairman, making him the longest currently sitting chairmanof any futures exchange in the world, , the exchange announcedWednesday. Rappaport was first elected to the position in 1993.Before his election, he served six years as a member of Nymex’sboard of directors. Rappaport has been a member of the exchangesince 1981.

March 19, 1999