Restructuring

One day after concluding its purchase of Sonat Inc., El PasoEnergy Corp. completed its after-merger corporate restructuring.Through normal attrition, early retirement and 607 layoffs, thework force has been pared down from 5,500 to 4,575, the companysaid Tuesday. The action is part of a company-wide plan toimplement the optimal corporate organization for the future, ElPaso said, and the company expects to save in excess of $100million in the first full year after the merger due to thesemeasures.

California, the trend-setter in electric restructuring, isexpected to take it to the next level with a “decision-making”investigation starting this fall on distributed generation and themonster issue lurking behind it – the sacrosanct local distributionfranchises.

California, the trend-setter in electric restructuring, isexpected to take it to the next level with a “decision-making”investigation starting this fall on distributed generation and themonster issue lurking behind it — the sacrosanct localdistribution franchises.

Ohio Gov. Bob Taft signed the state’s electric restructuringbill Tuesday. All Ohio customers are to have a choice of suppliersbeginning Jan. 1, 2001. Beginning Jan. 1, 2001 consumers will enjoya mandatory rate reduction of 5% provided for in the bill and beable to purchase electricity from whichever company they choose.

Pennsylvania Gov. Tom Ridge signed House Bill 1331 last Tuesday, deregulating many aspects of the states gas industry and paving the way for statewide customer choice to begin Nov. 1.

The Federal Energy Regulatory Commission has been putting somemeat on the bones of its FERC First restructuring efforts,following up the announcement of a new director, with that of a newdeputy director of the merged Office of Markets, Tariffs and Rates(OMTR) and a new Office of Energy Projects (OEP).

Pennsylvania Gov. Tom Ridge signed House Bill 1331 Tuesday,deregulating many aspects of the state gas industry and paving theway for statewide customer choice to begin Nov. 1.

Conectiv, a Mid-Atlantic electric and gas utility, announcedsweeping changes in its strategic focus earlier this week, but didnot alter its plan for gas operations. Conectiv said the changeswere made due to a clearing regulatory picture in the areas itserves.

The renewable-fuel mandate in the Clinton administration’sretail electricity restructuring legislation that was unveiled lastweek may be seen by the natural gas industry as its worst nightmarecome true, but it does have a little bit of a silver lining.Although it sets aside 7.5% of gross annual generation output forrenewable fuel sources, which is at least triple the current level,the full effect of the mandate won’t be felt until the end of thenext decade at the earliest.