Mega

During a time of mega-deals, PG&E National Energy Group(NEG) reported late last week that it had entered into one of theU.S. power industry’s largest with GE Power Systems’ EnergyServices unit. Bethesda, MD-based NEG entered into a long-termservice agreement for more than $1 billion.

El Paso Energy Corp. announced yesterday that it completed its$24 billion merger with The Coastal Corp. after the Federal TradeCommission accepted a proposed consent order that requires themerger partners to divest their interests in 11 natural gaspipeline and gathering systems in the Midwest, Florida, New Yorkand Gulf of Mexico areas as a condition of the marriage. Seven ofthe soon-to-be-divested assets are located in the offshore.

The coming decade promises to reveal a different utilityindustry than the one today, which already is bursting around theedges from the speed-of-light changes, according to Victor A. Burk,a managing partner in Arthur Andersen’s energy and utilitiesindustry sector. Burk offered what he termed his “megatrends” athis company’s energy symposium last week in Houston.

The coming decade promises to reveal a different utilityindustry than the one today, which already is bursting around theedges from the speed-of-light changes, according to Victor A. Burk,a managing partner in Arthur Andersen’s energy and utilitiesindustry sector. Burk offered what he termed his “megatrends” athis company’s energy symposium this week in Houston.

Shell Trading unveiled its mega-energy electronic tradingplatform in London this week, offering the first heavy dutycompetition for Enron Corp.’s industry-leading EnronOnline.

Shareholders of NiSource Inc. and Columbia Energy Groupoverwhelmingly approved the merger of the two companies, whichwould create a mega energy powerhouse serving nine states and morethan 4 million customers, stretching from Chicago in the west toNew England in the east and south to the Gulf of Mexico.

Columbia Energy Group shareholders today are expected to approvethe company’s proposed merger with NiSource Inc., which wouldcreate a mega energy powerhouse serving nine states and more than 4million customers, stretching from Chicago in the west to NewEngland in the east and south to the Gulf of Mexico. NiSourceshareholders gave a thumbs up yesterday, with nearly 65% of theoutstanding shares in approval, representing 80% of the sharesvoted.

Clearing the decks for its mega-trading and transportationventure with Entergy Corp., Koch Energy Trading yesterday announcedit has taken over the remaining 50% interest in IMD Storage,Transportation and Asset Management Co. (IMDST), making it the soleowner of the company which manages more than 100 Bcf of storage andabout 1 Bcf/d of pipeline transportation.

Southern Co.’s Southern Energy Inc. announced plans yesterday tobuild an electric generation facility of up to 1,000 MW as part ofthe development of the Apex Industrial Park in southern Nevada.Southern said it is too early in the process to decide how much gasit will burn and who the supplier will be. Southern Energy expectsthe power station to begin commercial operation in the firstquarter of 2003.