Reducing

U.S. energy merchants have moved early this year in refinancing their debt and reducing near-term risks, but the sector overall still has almost $80 billion in debt payments due by the end of 2006, including $23 billion this year, which has to signal a move toward more asset sales and restructuring, according to a report published Thursday by Standard & Poor’s Ratings Services (S&P).

U.S. energy merchants have moved early this year in refinancing their debt and reducing near-term risks, but the sector overall still has almost $80 billion in debt payments due by the end of 2006, including $23 billion this year, which has to signal a move toward more asset sales and restructuring, according to a report published Thursday by Standard & Poor’s Ratings Services (S&P).

The Michigan Public Service Commission (MPSC) has approved an amended gas cost recovery (GCR) plan for Michigan Consolidated Gas Co. (Mich Con), reducing the recoverable amount for 2002 by more than $26 million, and criticizing the company’s policy of decreasing low cost storage reserves to serve customers in 2001 and signing higher fixed priced contracts for 2002.

The Michigan Public Service Commission (MPSC) has approved an amended gas cost recovery (GCR) plan for Michigan Consolidated Gas Co. (Mich Con), reducing the recoverable amount for 2002 by more than $26 million, and criticizing the company’s policy of decreasing low cost storage reserves to serve customers in 2001 and signing higher fixed priced contracts for 2002.

KeySpan Corp. and Houston Exploration Co. announced Friday that Keyspan is reducing its ownership interest in the Houston-based E&P company in its continuing effort to monetize its non-core assets.

KeySpan Corp. and Houston Exploration Co. announced Friday that Keyspan is reducing its ownership interest in the Houston-based E&P company in its continuing effort to monetize its non-core assets.

CenterPoint Energy Inc. (formerly Reliant Energy) is committed to reducing its debt and becoming more financially flexible. However, the credit ratings downgrade by Moody’s Investors Services to “junk” status points out the numerous financial problems still ahead for the Houston-based utility.

Southern Natural is conducting a shut-in test at its Muldon storage field, which is reducing storage injection capacity by 64%. Based on current supply and projected demand, Southern will substantially exceed its maximum storage capacity on Thursday. Southern said unless there is a significant reduction in supply, a Type 6 OFO could be implemented.

El Paso began emergency maintenance Wednesday on Line 1201 downstream of Valve City Station, reducing San Juan Basin capacity by 100 MMcf/d through Friday. Capacity of the North Mainline will also be reduced by 60 MMcf/d during the same period. El Paso extended the duration for unscheduled repairs of Bondad Station’s 2A turbine, causing a Bondad capacity cut of 100 MMcf/d, through Aug. 8. The pipeline previously had expected to complete the work Aug. 2 (see Daily GPI, Aug. 1).