Nonregulated

In announcing a 46% increase in third quarter profits led by adoubling of earnings from the company’s nonregulated operations, ElPaso CEO William Wise said last week he expected the company’sacquisition of PG&E Gas Transmission Texas to win finalapprovals from the Federal Trade Commission and the Texas AttorneyGeneral’s office “literally any moment now.” He also said theCoastal merger still is expected to be completed in the fourthquarter.

In announcing a 46% increase in third quarter earnings yesterdayled by a doubling of earnings from the company’s nonregulatedoperations, El Paso CEO William Wise said he expected the company’sacquisition of PG&E Gas Transmission Texas to win finalapprovals from the Federal Trade Commission and the Texas AttorneyGeneral’s office “literally any moment now.” He also said theCoastal merger still is expected to be completed in the fourthquarter.

Cinergy Corp., the owner of Cincinnati Gas & Electric(CG&E), experienced a corporate makeover recently as it soldits nonregulated retail gas marketing unit, Cinergy Resources, toan integrated energy services cooperative called The EnergyCooperative (TEC) for an undisclosed sum and set plans in motion tocut its corporate center staff by more than 50%.

Cinergy Corp., the Cincinnati, OH-based owner of Cincinnati Gas& Electric (CG&E), sold its nonregulated retail gasmarketing unit to an integrated energy services cooperative calledThe Energy Cooperative (TEC) for an undisclosed sum last week.Cinergy said it will not disclose the number of customers CinergyResources serves.

Columbia Energy Group barely overcame warmer than normaltemperatures, weak gas prices and higher marketing costs during thefirst quarter to post a 2% increase in earnings. The companyreported first quarter 1999 earnings of $150.4 million, or $1.81per share, up $2.9 million, or four cents per share, from $147.5million or $1.77 per share in the 1998 first quarter. Strongperformances by its regulated transmission, storage anddistribution operations, as well as its propane, power generationand LNG activities were offset by continued difficulties inmarketing and exploration and production.

Columbia Energy Services, the nonregulated gas and electricmarketing subsidiary of Columbia Energy Group, signed a deal Mondayto supply many of the Eckerd Corp.’s drugstores with gas andelectric management. No terms of the deal were released.

PG&E Corp. suffered an 11% net earnings loss for the thirdquarter, reporting earnings of 55 cents per share ($210 million),compared with 62 cents per share ($257 million) for 3Q97. Thecompany attributed the majority of the decline to utilitysubsidiary Pacific Gas and Electric’s pending 1999 general ratecase and a change in the way revenues are recorded as a result ofthe deregulation of California’s electric industry. The utilitysubsidiary is earning below its authorized rate of return, a trendthat is expected to continue until the rate case is resolved earlynext year.