Merger

In its first report comparing the full effects of its merger with Columbia Energy Group, NiSource Inc. reported a 33% increase in first quarter net income to $242.2 million, or $1.18 per share, led by a favorable hedging program in its gas production and merchant division, reduced debt and reduced expenses that offset the negative impacts of very warm weather.

Less than two weeks after being formed by a merger of AEC and PanCanadian, EnCana Corp. has embarked on a major expansion of its Rocky Mountain region producing assets by purchasing 500 Bcf of long-life natural gas and associated natural gas liquids reserves and about 338,000 net acres of land in northwestern Colorado from El Paso Corp. (see Daily GPI, April 5)

Regulatory review of Northwest Natural Gas Corp.’s proposed purchase of its neighboring utility, Portland General Electric, from bankrupt Enron was suspended Tuesday for 60 days at Northwest Natural’s request so that it can more fully answer questions concerning how the bankruptcy might materially affect the $2.98 billion acquisition. The earliest estimated target for a final decision from the Oregon Public Utilities Commission is now the fall of this year; it had been late May.

Duke Energy Corp.’s deal to pick up Vancouver-based Westcoast Energy moved another step closer Friday after receiving approval from federal Industry Canada (similar to the U.S.Dept. of Commerce). The cash, stock and debt acquisition, valued at US$8 billion, would allow the Charlotte, NC-based diversified energy company to grow its Canadian business and expand its North American natural gas infrastructure. As part of the transaction, Duke also plans a significant financial investment in its stake, adding several new Canadian offices and donating funds for Canadian educational research.

With its merger with Portland General Electric proceeding through state and federal approval processes, Northwest Natural announced Friday it has reduced previously announced fourth quarter earnings by $2.7 million, or 6 cents/share, due to a resolution of a 10-year-old lawsuit by one of its large commercial customers that went against the Portland, OR-based natural gas distribution utility.

NewPower Holdings Inc. on Wednesday disclosed that it is discussing a possible sale of the company to Centrica plc, which is been on a buying spree for North American retail service providers. Centrica, a leading provider of energy and other essential services in the UK, also is the largest retail energy marketer in North America with more than two million customers. NewPower’s 800,000 customers would further add to Centrica’s massive customer base.

NewPower Holdings Inc. on Wednesday disclosed that it is discussing a possible sale of the company to Centrica plc, which is been on a buying spree for North American retail service providers. Centrica, a leading provider of energy and other essential services in the UK, also is the largest retail energy marketer in North America with more than two million customers. NewPower’s 800,000 customers would further add to Centrica’s massive customer base.

NewPower Holdings Inc. last Wednesday disclosed that it is discussing a possible sale of the company to Centrica plc, which is been on a buying spree for North American retail service providers. Centrica, a leading provider of energy and other essential services in the UK, also is the largest retail energy marketer in North America with more than two million customers. NewPower’s 800,000 customers would further add to Centrica’s massive customer base.

A group representing 32 industrial customers in the Pacific Northwest has asked FERC to conduct a more thorough analysis of Northwest Natural Gas Co.’s planned acquisition of Enron affiliate Portland General Electric (PGE). The group charges that the deal could reduce competition in the region’s natural gas transportation and power markets. Northwest Natural and Enron agreed to the $1.8 billion cash and stock transaction in October two months before Enron declared bankruptcy (see Power Market Today, Oct. 9).