Opens

Although many might want Enron Corp.’s once remarkable trading platform to resume as soon as possible, several factors may delay a quick start-up of the proposed UBS AG-Enron wholesale trading arm. The two companies may have come to terms in a 10-year deal, but the transaction faces the scrutiny and ultimate decision of the bankruptcy court handling Enron’s case and several federal authorities. It also faces the blessing of creditors, who would have 10 days following a court’s decision to appeal.

The U.S. Bankruptcy Court in San Francisco extended the exclusivity period for PG&E’s plan of reorganization, but allowed regulators until Feb. 13 to provide the court with specific and credible evidence that they can produce a viable alternative. The court also ordered PG&E, the California Public Utilities Commission (CPUC) and the state to provide comments on Jan. 25 about whether a third party should be appointed to meet with them to try and attempt to resolve conflicts relating to PG&E’s plan.

Although many might want Enron Corp.’s once remarkable trading platform to resume as soon as possible, several factors may delay a quick start-up of the proposed UBS AG-Enron wholesale trading arm. The two companies may have come to terms in a 10-year deal, but the transaction faces the scrutiny and ultimate approval of the bankruptcy court handling Enron’s case and several federal authorities. It also faces the blessing of creditors, who could appeal any decision, and because of the legalities involved and the witch hunt going on in Washington, many analysts remain tight-lipped about the deal.

Duke Energy Field Services (DEFS) said it has placed its new Platteville natural gas processing plant, located northeast of Denver, into service. It will have an initial capacity of 33 MMcf/d and is expandable to 50 MMcf/d with additional inlet compression. The plant will facilitate additional oil and gas production growth in the Denver-Julesburg (D-J) Basin from DEFS customers.

In what was a major blow for El Paso Corp. last week, the Federal Energy Regulatory Commission granted the request of the Office of General Counsel’s Market Oversight and Enforcement Section (MOE) for an inquiry into whether El Paso Natural Gas withheld transportation capacity from customers last winter in an attempt to drive up prices for natural gas delivered to the Southern California border.

In what was a major setback for El Paso Corp., the Federal Energy Regulatory Commission Wednesday granted the request of the Office of General Counsel’s Market Oversight and Enforcement Section (MOE) for an expanded investigation into whether El Paso Natural Gas withheld transportation capacity from customers last winter in an attempt to drive up prices for natural gas delivered to the California border.

Continuing his nonstop photo opportunities to flip the switches on new electric generation sources, Gov. Gray Davis Monday opened the 90 MW Larkspur Energy Project, built by InterGen and billed as the largest natural gas-fired power plant to come on-line in San Diego in more than 40 years. InterGen also signed an 11-year contract with the state for the plant’s output.

Another 555 MW of new generation were officially brought online in California Monday by a now familiar pair–Gov. Gray Davis and Calpine Corp.CEO/founder Peter Cartwright–bringing to 1,400 MW the total for three new plants the governor has helped launch over the past two weeks. This one is Los Medanos Energy Center in the East San Francisco Bay industrial town of Pittsburg.

The Department of Transportation (DOT) on Friday gave El Paso Natural Gas the go-ahead to re-start on a restricted basis the South Mainline line that ruptured and caused the fatal explosion in New Mexico nearly a year ago (see Daily GPI, Aug. 22, 2000), interrupting some supplies to the southwestern and California gas markets for weeks and months afterward.