Securities

Claiming that KeySpan Corp. violated the Securities Exchange Act of 1934, the law firm of Weiss & Yourman said last week that it is bringing a class action lawsuit against KeySpan and certain individuals associated with the company in the U.S. District Court for the Eastern District of New York. The lawsuit is being brought on behalf of purchasers of KeySpan shares between April 26, 2000 and July 17, 2001.

PG&E Corp. said Friday in a Securities and ExchangeCommission filing that it will take a charge of $6.9 billionagainst 2000 financial results, unless there is a regulatory orlegislative solution to its multi-billion-dollar credit crunch. Thered ink is caused by the past-due bills for wholesale power andunpaid debt and interest tied to the fact that the company’sutility, Pacific Gas and Electric Co., for nine months has beenpaying significantly more for electricity than it is permitted tocharge in retail rates, which have been frozen at 1996 levels. Evenlast week’s 3-cent/Kwh rate increase decision by state regulatorsleft retail rates frozen, imposing the increase as a surcharge.

El Paso Corp.’s securities filing late last week revealed that its Merchant Energy segment, which includes the company’s trading and risk management functions, posted an astounding increase in 2000 earnings before interest and taxes over 1999. The segment posted $3 million in EBIT in 1999, compared with $563 million for 2000.

El Paso Corp.’s securities filing late last week revealed thatits Merchant Energy segment, which includes the company’s tradingand risk management functions, posted an astounding increase in2000 earnings before interest and taxes over 1999. The segmentposted $3 million in EBIT in 1999, compared with $563 million for2000.

High power costs in the Pacific Northwest prompted Moody’sInvestors Service yesterday to change its outlook on securitiesissued by PacifiCorp (senior secured debt at A2) to negative fromstable.

El Paso Energy Corp. will sell its 35% stake in Oasis Pipe Line,a 1 Bcf/d line in Texas, according to a disclosure in a securitiesfiling made last week. El Paso said that the sale, which wasnegotiated in October, would result in a $20 million loss. The36-inch intrastate gas line runs 608 miles from the West Texas Wahamarket to the Katy hub outside of Houston. The pipeline provides alink between El Paso Natural Gas and Tennessee Gas Pipeline, and isthe principal route for Permian Basin supplies to access theHouston Ship Channel. Oasis completed a substantial upgrade in1998, installing 9,400 horsepower of compression, and newinterconnects to increase deliveries to eastern markets. DowHydrocarbons and Aquila Energy, a unit of Utilicorp United, alsoown stakes in the line. Along with its 35% ownership, Aquila alsohas firm transport rights on 280,000 Mcf/d. Before El Paso’s saleis complete, it still needs approvals from the Federal TradeCommission and the Texas Attorney General.

El Paso Energy Corp. will sell its 35% stake in Oasis Pipe Line,a 1 Bcf/d line in Texas, according to a disclosure in a securitiesfiling made last week. El Paso said that the sale, which wasnegotiated in October, would result in a $20 million loss.

Reliant Energy said its subsidiary Reliant Resources, Inc., whichincludes all of its unregulated energy operations, has filed aregistration statement with the Securities and Exchange Commission foran initial public offering of common stock. The IPO was announced inJuly as part of a corporate reorganization plan designed to separatethe company’s regulated and unregulated businesses into two publiclytraded companies (see Daily GPI, July28).

The $6 billion NiSource-Columbia merger is on its way down the homestretch, with only the Securities and Exchange Commission’s approvalleft in its path on the way to its predicted end of the yearcompletion date (see Daily GPI, July27). To ensure that the combined company moves through thetransition process smoothly, NiSource announced more post-mergerleadership positions for its lengthy list of business units.