Sector

Five major energy companies are the majority of the private-sector firms signing a consent decree with California state officials Thursday to clean up a 38-acre toxic waste site in Huntington Beach, CA, that was abandoned nearly 20 years ago and has sat vacant. Gov. Gray Davis announced the agreement, calling it a “significant achievement.”

While discounting current highs as seasonal and political, the Canadian natural gas sector sees the North American market shaping up as strong enough to stimulate a fresh and sustained run at expanding supplies.

While discounting current highs as seasonal and political, the Canadian natural gas sector sees the North American market shaping up as strong enough to stimulate a fresh and sustained run at expanding supplies.

The power industry may be suffering now from a liquidity crunch, but it’s not the first time for the sector, and history may offer some “important” lessons, according to a Standard & Poor’s credit analyst.

Under a new California law passed this year (SB 39XX) to tighten private sector power plant maintenance and operating standards, a newly created three-person committee will meet next week to begin a two-month process for cranking out the tougher state standards early next year. The California Independent System Operator (CAISO) will submit draft rules for the committee’s initial review Dec. 20.

Indicative of industry-wide trends in the same direction, Rosemead, CA-based Edison International’s senior executives told financial analysts Tuesday that the energy holding company is staking its future on restoring its traditional utility operations to full financial health.

For Dynegy Inc., it’s way too early to party down, but the shunned wallflower of the energy merchant sector regained some of its former appeal to investors last week following some straight talk from the new CEO. Bruce Williamson, who assumed the helm just last month, offered a salve to the ailing company in his first conference call with analysts, inspiring confidence lacking for months in the former powerhouse energy merchant.

Is the second shoe of another bankruptcy filing in the energy merchant sector about to drop? No doubt it’s a question on the minds of a lot of energy industry executives after Xcel Energy last Monday said that there is a “substantial likelihood” that its NRG Energy unit will be the subject of a bankruptcy proceeding and Reliant Resources warned that it may need to pursue Chapter 11 if it can’t cobble together financing deals on acceptable terms.

For Dynegy Inc., it’s way too early to party down, but the shunned wallflower of the energy merchant sector was more appealing to investors on Tuesday than it has been in months. A record 38.77 million shares were traded before the market closed, sending the cellar stock, which had opened the day at 77 cents, over $1 before noon. It closed at $1.35, a gain of more than 75%.