Operating

“Owners of small businesses, intent on reducing their operatingcosts, are receptive to the idea of buying their energy supplies atreduced group rates through local or regional businessassociations,” according to a new study by RKS Research andConsulting. The North Salem, NY firm said a small businesssub-group, home-based businesses, would consider discountwarehouses and membership clubs for low-priced electricity offers.RKS also found a market emerging around the idea of bundledservices, including energy, local and long distance telephoneservice and Internet access all on one bill. While the small usersare interested in cutting costs, they can’t do without service.”Across the board, business owners say they seek long-termrelationships with suppliers who stress simplicity and ease ofuse…..They are willing to trade off price for service, qualitybrand name and convenience.”

Tennessee said operating conditions had improved enough Monday toallow it to lift an OFO Action Alert implemented Saturday (see DailyGPI, Nov. 12). Weekend OFOs by PacificGas & Electric, Southern California Gas and Northern Natural Gasalso were no longer in effect Monday.

Seeking greater operating flexibility in what is expected to bea more fluid California natural gas market following industryrestructuring, Occidental Petroleum has started work on a $9million, 12-mile, 16-inch gas pipeline out of Elk Hills to the eastof the massive reserve. It will interconnect with Pacific Gas andElectric’s transmission line swinging north from the Arizonaborder, providing the first interconnection between Four Cornerssupplies and PG&E when combined with earlier Elk Hillsconnection work done by Oxy.

Seeking greater operating flexibility in what is expected to bea more fluid California natural gas market following industryrestructuring, Occidental Petroleum has started work on a $9million, 12-mile 16-inch-diameter gas pipeline out of Elk Hills tothe east of the massive reserve. It will interconnect with PacificGas and Electric Co.’s transmission line swinging north from theArizona border, providing the first interconnection between FourCorners supplies and PG&E when combined with earlier Elk Hillsconnection work done by Oxy.

Peoples Energy Production Co., the affiliate of Peoples Gas,extended a year-long buying binge Thursday, by obtaining 70% ofEnsign Operating Co.’s Arkoma basin assets for $15 million. Theproduction arm of Peoples Energy has now spent $65 million inpartnerships and acquisitions since the fall of 1998.

Michigan’s two largest electric utilities – Consumers Energy,the principal subsidiary of CMS Energy, and Detroit Edison, theprincipal operating subsidiary of DTE Energy – plan to implementthe Michigan Public Service Commission’s (MPSC) electricrestructuring plan and offer electric customer choice this fall.The announcement follows the Michigan Supreme Court’s ruling onJune 29 establishing implementation of electric customer choice asa voluntary action undertaken at the discretion of utilities.

After more than five months of operating short-handed, thefive-member California Public Utilities Commission has gone throughits version of governor’s appointees “musical chairs” in less thana week. First, there were two “temporary” appointees announcedinformally two weeks ago. Then two permanent, six-year appointeeswere named by Gov. Gray Davis.

After more than five months of operating short-handed, thefive-member California Public Utilities Commission has gone throughits version of governor’s appointees “musical chairs” in less thana week. First, there were two “temporary” appointees announcedinformally at the end of last week. Then on Wednesday twopermanent, six-year appointees were named by Gov. Gray Davis.

Virginia Gas Co., a small integrated natural gas companyoperating in the southwestern tip of Virginia, has selectedOppenheimer Corp. as its financial advisor to conduct an evaluationof the company, its subsidiaries and affiliates, and strategicalternatives available.