Reprieve

Embattled El Paso Corp. said last Tuesday it received waivers from lenders on its $3 billion revolving credit facility in order to deal with potential issues arising from the company’s major downward adjustment to its oil and natural gas reserves.

Embattled El Paso Corp. said Tuesday it received waivers from lenders on its $3 billion revolving credit facility in order to deal with potential issues arising from the company’s major downward adjustment to its oil and natural gas reserves.

In a reprise of action two months ago, PG&E Corp.’s financially struggling National Energy Group (NEG) announced late last Thursday that it agreed with lenders to provide funding for two of the merchant energy developer’s new electric generating plants — the 840 MW natural gas/fuel oil-fired Lake Road plant in Connecticut and 1,121 MW gas-fired, combined cycle La Paloma unit in California.

Commenting on the temporary reprieve ACN Energy received last week that will allow it continue marketing natural gas in Georgia, the Farmington Hills, MI-based company said it was “pleased” that it was able to reach an agreement with Atlanta Gas Light Co. (AGLC) (see Daily GPI, Nov. 18).

Allegheny Energy Inc. last Monday said that its subsidiaries, Allegheny Energy Supply Co. LLC and Allegheny Generating Co., have received waivers from bank lenders under their syndicated credit agreements that extend through Nov 29.

Despite an early dip and a temperature reprieve forecasted by the National Weather Service (NWS), natural gas futures stayed hot Monday, as traders continued to cover shorts following last week’s 14% rally. Saving their best for last, bulls were most active at the close Monday, as they pushed the September contract an additional 4% higher on the day to $3.267, a 11.8-cent gain for the session. Estimated volume was heavy with 105,487 contracts changing hands.

FERC has given Southern California Edison until noon today (PST)to pay the California Power Exchange (Cal-PX) for its bulkelectricity purchases, which is the deadline by which the Cal-PXmust pay its creditors.

TransCanada PipeLines Ltd. won a reprieve from a feared revenuehemorrhage but lost a battle for rights to administer strongmedicine of its own making against recurrences of the threat. In aruling on lengthy, hard-fought winter hearings, the National EnergyBoard authorized TransCanada to raise floor prices forinterruptible delivery service on excess capacity to 80% of ratesfor firm service from 50%, effective May 1. But the NEB rejectedpleas by the pipeline to decide independently on setting variableminimum charges on leftover space depending on its reading ofmarket conditions.

TransCanada PipeLines Ltd. won a reprieve from a feared revenuehemorrhage but lost a battle for rights to administer strongmedicine of its own making against recurrences of the threat. In aruling on lengthy, hard-fought winter hearings, the National EnergyBoard authorized TransCanada to raise floor prices forinterruptible delivery service on excess capacity to 80% of ratesfor firm service from 50%, effective May 1. But the NEB rejectedpleas by the pipeline to decide independently on setting variableminimum charges on leftover space depending on its reading ofmarket conditions.