The Williams Cos. Inc.’s consolidated credit measures have”deteriorated” due to an aggressive capital investment program,ever-widening losses from its communications business and weakenergy prices throughout 1998 and earlier this year, but Fitch IBCAnevertheless gave the company a credit rating of ‘BBB’ basedlargely on the stability of its interstate gas pipelines and thegrowth potential of its diversified energy businesses.
Measures
Articles from Measures
Senate Bills Aim at Royalty Relief
Sen. Frank Murkowski (R-AK), chairman of the Senate Committee onEnergy and Natural Resources, consolidated several recentlegislative measures and a few new ones into two separate pieces oflegislation last week that could have a wide ranging impact on theexploration and production sector.
Maryland Passes Electric Choice Legislation
Maryland Gov. Parris Glendening signed an electric restructuringbill and related tax measures into law last Thursday less than aweek after the Maryland General Assembly passed the legislation.The new law will phase in residential customer choice over athree-year period beginning with one-third of residential customersJuly 1, 2000. Residential customers choosing to keep their utilityas supplier would get rate cuts of 3% to 7.5% to be determined bythe Public Service Commission. The rate cuts would last four yearsand then rates would be deregulated.
Senate OKs Producer Relief; Clinton Veto Likely
The Senate unanimously passed two economic relief measures forindependent oil and gas producers on Tuesday. The bad news,however, is that the initiatives are part of a supplementalspending bill that President Clinton has threatened to veto becausethe expenditures – mostly for foreign aid efforts – would cut intospending for domestic programs that he supports.
Study Measures Price Impact of Pipe Expansions
A study released Monday by Energy ERA, a Calgary-based energyconsulting firm, estimated that two scenarios involving differentpipeline expansions – one involving Vector and Millennium andanother involving Independence and MarketLink-from the Midwest intothe Northeast will have the same spot price impact. Both wouldcause an average $0.30/MMBtu price decline in New York Citygateprices over the next five years.
Alliance Passes Final Environmental Test, FERC Says
The proposed Alliance Pipeline, with the adoption of certainmitigation measures, would have “limited adverse environmentalimpact and would be an environmentally acceptable action,”according to a final environmental impact statement (FEIS) on theproject that was issued Monday.
Williams, MAPCO Lack FTC Blessing
The Williams Companies Thursday said its shareholders and thoseof MAPCO approved measures necessary to complete Williams’non-taxable, stock-for-stock acquisition of MAPCO. Federal TradeCommission clearance is expected in time for a first-quarterclosing. Thursday, Williams shareholders approved a charteramendment to provide sufficient common shares and authorizedWilliams’ board of directors to issue stock to MAPCO shareholders.