The Department of Transportation (DOT) last week announced it was seeking a fine of $2.52 million against El Paso Natural Gas for several “probable violations” that potentially contributed to the fatal explosion on its pipeline system in New Mexico last August, which resulted in 12 deaths. It was said to be the “largest civil penalty” ever sought against a pipeline operator for federal safety violations.
Risk
Articles from Risk
Watson: Enron Upside ‘Clearly Worth Doing the Deal’
Dynegy CEO Chuck Watson told the investment community Monday that he was “90% sure” that the risk/reward ratio in the planned merger with Enron Corp. made it “clearly worth doing the deal,” because the issues that decimated the former market leader were with its non-core businesses. Explaining that his team had “adequately bracketed the downside,” as the deal fell together over the past few weeks, Watson said he could not be “99% positive,” but noted that the upside was “substantial,” and said he had a “good deal of confidence…that we’ll be absolutely fine here.”
Aquila Unloads Energy Manager Service Business
Continuing along its chosen path of focusing on its wholesale and energy risk management businesses, Kansas City, MO-based Aquila Inc. said on Monday that it has sold the retail energy manager services business of UtiliCorp Energy Solutions to Energy Management Resources Inc., a nationwide provider of energy supply management services to commercial and industrial customers throughout the United States.
Mild Weather, Weak Screen Pull Cash Down
At the risk of sounding like a broken record, prices continued to slide Wednesday for pretty much the same reasons that they have through nearly all of the May aftermarket so far: a relative dearth of weather demand for either heating or air conditioning; a weak screen; and a decidedly blasé attitude about any urgency in refilling storage.
State Regulators Cite Over-Dependence on Gas
Over-reliance on natural gas as the fuel for new electricgenerating plants nationally carries with it an inherent risk toreliability and the threat of exacerbating already volatilewholesale markets, according to three industry executives whoaddressed a meeting of state regulatory commissioners in San Diegolast week.
TXU Inks Another Energy Services Contract
TXU Energy Services inked a five-year, $300 million energyservices contract to provide natural gas, electric and riskmanagement services to more than 80 of John Deere’s North Americanfacilities. TXU Energy Services will also help to developenergy-efficiency improvement projects for John Deere’s NorthAmerican operations.
TXU Signs Energy Services Contract With John Deere
TXU Energy Services inked a five-year, $300 million energyservices contract to provide natural gas, electric and riskmanagement services to more than 80 of John Deere’s North Americanfacilities. TXU Energy Services will also help to developenergy-efficiency improvement projects for John Deere’s NorthAmerican operations.
Power Shock Sends CA Players Running for Risk Management
In the wake of California’s latest round of electricity priceand supply shock concentrated in San Diego, some of the state’smajor energy industry participants have raised the level ofinterest in forward markets and hedging. San Diego Gas and ElectricCo., in particular, has been second guessed about why it did notuse available hedging instruments through the state’s nonprofitpower exchange to help ease the impact of recent wholesale pricespikes on its retail customers.
Strong Finish Gives Bulls Another Chance at $4.60
With all the trajectory of a risk manager tethered to abungee-cord and thrust out of a Houston skyscraper, natural gasprices dove then rebounded Monday as traders digested fresh weatherforecasts.
People
PG&E Energy Trading-Gas Corp. has named Al Pollard to thepost of Midwest basis trader with responsibility for managing theMidwest desk’s basis risk, reporting to Michael L. Axton, directorof gas trading, Midwest. Pollard joins PG&E Energy Trading fromEnron where he has held trading positions in natural gas and powersince 1995.