National

Enron Energy Services (EES) continued on its quick pace of business in 2001 as it reported that it has entered into two long-term agreements to manage energy supplies with large retailers over the last two days. EES will manage the energy needs for all of Saks Inc.’s store locations, distribution facillities and administrative offices in 39 states. EES also teamed with J.C. Penney Co. to cover the acquisition of about $600 million in energy-related commodities for its retail locations. Terms of the Saks deal were not disclosed.

As predicted by National Energy Board (NEB) member Jean-PaulTheoret in a winter speech to a Quebec lawyers’ conference, thefirst results of unleashing competition in the formerly stableCanadian natural gas pipeline community are “messy markets” andpotentially “messy outcomes.” That became clear in one of the firsttests of the NEB’s declared intentions to encourage growth of atrue market in transportation services by making flexibility andadaptability the watchwords for a new era of light-handedregulation.

As predicted by National Energy Board (NEB) member Jean-Paul Theoret in a winter speech to a Quebec lawyers’ conference, the first results of unleashing competition in the formerly stable Canadian natural gas pipeline community are “messy markets” and potentially “messy outcomes.” That became clear in one of the first tests of the NEB’s declared intentions to encourage growth of a true market in transportation services by making flexibility and adaptability the watchwords for a new era of light-handed regulation.

PG&E’s National Energy Group (NEG) announced the winning bidders in a recent open season for expansion capacity on its Gas Transmission-Northwest (GTN) pipeline system. Two power generators, Newport Northwest LLC and Calpine, were awarded 200,000 Dth/d of firm transportation capacity that will be available in 2002. The pipeline also is proceeding with another capacity offering that will convert to new firm service in 2003.

PG&E’s National Energy Group (NEG) announced the winningbidders in a recent open season for expansion capacity on its GasTransmission-Northwest (GTN) pipeline system. Two power generators,Newport Northwest LLC and Calpine, were awarded 200,000 Dth/d offirm transportation capacity that will be available in 2002. Thepipeline also is proceeding with another capacity offering thatwill convert to new firm service in 2003.

The issue of drilling in the Arctic National Wildlife Refuge(ANWR) in Alaska continues to heat up as state legislators continuein their attempts to pry open the restricted lands to natural gasand oil production. Members of the Alaska state legislature were inWashington, DC this week pleading there case for lease sales in thecontested area to begin in the near future, while trying to lay oldmyths to rest regarding the environmental impact.

The future is bright for investors in the power market, butrather dim for the nation’s power users, Salomon Smith Barney (SSB)warned in a new report titled “The U.S. Electric Shock.”

The issue of drilling in the Arctic National Wildlife Refuge(ANWR) in Alaska continues to heat up as state legislators continuein their attempts to pry open the restricted lands to natural gasand oil production. Members of the Alaska state legislature were inWashington, DC last week pleading their case for lease sales in thecontested area to begin in the near future, while trying to lay oldmyths to rest regarding the environmental impact.

The future is bright for investors in the power market, butrather dim for the nation’s power users, Salomon Smith Barney (SSB)warned in a new report titled “The U.S. Electric Shock.” The powercrisis won’t be confined to California and the West for very long.Power shortages are going to spread to eastern states over the nextfew years not only because of delays in power plant constructionbut also because of delays in gas supply development andconstraints on the gas pipeline grid, the firm predicted.