Pick

As regulators and lawyers pick apart the details of Enron Corp.’s undoing, a letter written by a company executive to CEO Kenneth Lay last year raises the possibility that the company may have to reduce past earnings by another $1.3 billion. The letter discloses two investment vehicles — one not previously disclosed — which could cut into earnings more than its four-year restatement in an 8-K filing with the Securities and Exchange Commission (SEC) last November (see Daily GPI, Nov. 9, 2001).

Gas development is accelerating in Canada, according to two government agencies that report healthy signs for reserves and production. In Alberta, still the source of about four-fifths of Canadian gas, production companies have nearly doubled their performance in the field. In 2000, a record 8,228 gas wells replaced 90% of the year’s production, the Alberta Energy and Utilities Board said in an annual review. In 1999, it took 6,015 wells to replace 56% of the province’s gas output.

Gas development is accelerating in Canada, according to two government agencies reporting healthy signs for reserves and production. In Alberta, still the source of about four-fifths of Canadian gas, production companies have nearly doubled their performance in the field. In 2000, a record 8,228 gas wells replaced 90% of the year’s production, the Alberta Energy and Utilities Board said in an annual review. In 1999, it took 6,015 wells to replace 56% of the province’s gas output.

The House voted by a narrow margin yesterday to retain a controversial measure that attempts to block construction of the 744-mile Gulfstream pipeline project that would transport gas from Mobile Bay, AL, across the Gulf of Mexico to Florida.

With legislative action at a standstill, the California PublicUtilities Commission (CPUC) may pick up the ball and run with it.CPUC President Loretta Lynch said Monday the commission will votetoday on a 30% electric retail rate increase (3 cents/kWh) goingforward and three other measures designed to stabilize thecash-strapped investor-owned utilities and assure power supplieswill continue to flow.

Vastar Resources and Newfield Exploration Co. have selectedWilliams to gather, process and transport nearly 75 MMcf/d ofnatural gas from offshore wells along the Alabama coast. The twoenergy producers are jointly developing reserves in the Gulf ofMexico’s Mobile Bay area, the location where Williams recentlyadded 350 MMcf/d of transportation capacity and a wholly-owned 600MMcf/d processing plant onshore. The Williams plant is located inCoden, AL.

Adding to Monday’s 18-cent price slide the futures marketdribbled lower yesterday as traders factored warming temperaturesinto prices and hunted for sell-stops amid two distinct sellingsurges.

Dynegy last week said it will pick up a bundle of Midwestgeneration assets to accelerate its energy convergence strategywhen it acquires Decatur, IL-based Illinova Corp. The combinedcompany will be called Dynegy and will own/control more than 15,000MW of gross domestic generating capacity, average more than 9 Bcf/dof gas sales, and serve more than 950,000 retail customers.

Consolidated Edison Co. of New York will collect $1.1 billionand Niagara Mohawk Power Corp. will pick up $355 million on salesof several fossil-fueled generating plants, approved Thursday bythe New York State Public Service Commission.