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California’s Gov. Gray Davis Tuesday prepared for the New Year by re-appointing Michael Peevey, 64, to the California Public Utilities Commission and appointing his current cabinet secretary, Susan Kennedy, 42, to another spot on the five-member CPUC. Both are appointed to six-year terms and their new positions are subject to state Senate confirmation.

Former Enron Corp. vice president Sherron Watkins, who warned then-Chairman Kenneth L. Lay in August 2001 that the energy trading company was about to “implode” in a wave of accounting irregularities, and two other whistle-blowers were named over the weekend as Time Magazine’s Persons of the Year. She will share the cover with WorldCom auditor Cynthia Cooper and FBI agent Coleen Rowley.

Despite high storage levels and falling gas futures prices, consultants at Energy and Environmental Analysis Inc. (EEA) are convinced that low gas production and inadequate drilling will pressure Henry Hub prices up to $5.35/MMBtu on average next year and in 2004, given normal weather. The 12-month strip of futures prices currently is about $1.50 less than that.

FERC was dealing out pipeline certificates like cards at a Black Jack table last Wednesday at its regular agenda meeting. Recipients included the Georgia Strait Crossing pipeline, Northwest Pipeline for a mainline expansion, Southern Natural for its South System II expansion, South Carolina Pipeline for a new line to the Elba Island LNG terminal, Millennium Pipeline (see separate story), two projects designed to serve Long Island (see separate story), and to Northern Natural Gas for compression expansion in Nebraska. Kinder Morgan Texas also won a presidential permit for a border crossing project.

FERC was dealing out pipeline certificates like cards at a Black Jack table on Wednesday at its regular agenda meeting. Recipients included the Georgia Strait Crossing pipeline, Northwest Pipeline for a mainline expansion, Southern Natural for its South System II expansion, South Carolina Pipeline for a new line to the Elba Island LNG terminal, Millennium Pipeline (see separate story) and two projects designed to serve Long Island (see separate story). Kinder Morgan Texas also won a presidential permit for a border crossing project.

Looking to calm investor and credit rating agency jitters about energy trading operations, Aquila, Inc. on Friday said that it estimates that 70% of its 2002 operating earnings and 75% of its 2003 operating earnings will come from the more traditional side of its business mix. The company also said it intends to maintain its dividend at $1.20 per share.

Enron Corp. got the go-ahead Wednesday from the U.S. federal bankruptcy judge handling its case to proceed with an auction of its commodities trading operations, setting a Jan. 7 deadline for bids. Enron said it wanted to complete the sale by Jan. 11. Judge Arthur Gonzalez approved expedited procedures to allow Enron to auction hardware, software, employment contracts for traders and other assets.

As the dust begins to settle in the second coming of Ken Lay as CEO of Houston-based Enron Corp., there was no word at the end of last week as to who will become part of Lay’s brain trust on the top floor. Assuaging worries of analysts and investors, Lay and his executive team laid low last week, after acknowledging in previous days that Enron is offering some employees new stock options, which would be worth up to 5% of their salaries. However, Enron also plans to cut more than half of the 900 employees in its sagging broadband unit, moving 250 to other positions and offering severance packages to the other 250.

As the dust begins to settle in the second coming of Ken Lay as CEO of Houston-based Enron Corp., Lay said the company will offer some employees new stock options at strike prices beginning this week, a one-time additional grant, which would be worth up to 5% of their salaries. He also said, however, that the trading giant will cut more than half of the 900 employees in its sagging broadband unit, moving 250 to other positions and offering severance packages to the other 250.