Pending

U.S. energy companies make the big bucks, and that in turn makes them a top target for lawsuits. The average U.S. energy company now has around 364 separate lawsuits pending in U.S. courts, and 59% faced at least one $20 million-plus lawsuit last year, according to a survey by law firm Fulbright & Jaworski.

FPL Group is suing the state of Maryland and its public service commission (PSC) to hasten consideration of its pending merger with Constellation Energy Group.

Uncertainty surrounding a long-term contract with bankrupt Calpine Corp. and a pending rate case leaves Kern River Gas Transmission Co. with a question about its future credit outlook, albeit with a current relatively high “A-” rating and the ultimate backing of its parent company, Berkshire Hathaway’s utility unit, MidAmerican Energy Holdings Co., according to Standard & Poor’s Ratings Services. S&P Monday affirmed the “A-” rating on senior secured debt of Kern River’s funding arm, Kern River Funding Corp, Salt Lake City.

In a move that essentially keeps all of the major energy suppliers in California during the wholesale market meltdown in 2000-2001 at risk in pending litigation, California Superior Court Judge Ronald Prager in San Diego County ruled Tuesday against Dallas-based TXU Corp.’s contention that it should not be included in a series of 27 civil cases that have been consolidated in the judge’s court. Prager oversaw the multi-billion-dollar class action lawsuit against Sempra Energy and its two California natural gas utilities that was settled earlier in the year in the midst of a jury trial.

Maryland Gov. Bob Ehrlich last Thursday vetoed legislation passed by state lawmakers that, among other things, would limit pending power rate hikes for Baltimore Gas & Electric (BGE) customers to 15% through May 31, 2007 and fire the current set of commissioners at the Maryland Public Service Commission (PSC).

The cards are stacked against two pending FERC nominees, Phillip D. Moeller and Jon Wellinghoff, receiving swift Senate confirmation this session, according to a top legislative analyst for the natural gas pipeline industry.

The New Jersey Division of Rate Counsel has filed a brief urging the New Jersey Board of Public Utilities (BPU) and the administrative law judge (ALJ) hearing the case to reject the pending merger of Public Service Enterprise Group (PSEG) with Exelon Corp. as currently proposed. The initial brief was filed by New Jersey Division of Rate Counsel Director Seema Sing.

Calgary-based unconventional gas player Mahalo Energy Ltd. says its pending acquisition of Peregrine Energy Ltd., also of Calgary, will complement its existing low-risk U.S. and Canadian coalbed methane and shale portfolio with high-risk, high-reward prospects in Northeast British Columbia and west-central Alberta.

Calgary-based unconventional gas player Mahalo Energy Ltd. says its pending acquisition of Peregrine Energy Ltd., also of Calgary, will complement its existing low-risk U.S. and Canadian coalbed methane and shale portfolio with high-risk, high-reward prospects in Northeast British Columbia and west-central Alberta.