Several

Kansas-based Western Resources is exploring “several strategic alternatives” for its electric utility operations, which include finding a merger partner as it attempts to separate its regulated and unregulated assets and strengthen its market position. If a merger partner can’t be found, Western plans to look at other options for its two electric utilities, KPL and KGE. It may form a strategic alliance with other companies, partner with another electric or gas utility or possibly even sell them outright.

Kansas-based Western Resources is exploring “several strategicalternatives” for its electric utility operations, which includefinding a merger partner as it attempts to separate its regulatedand unregulated assets and strengthen its market position. If amerger partner can’t be found, Western plans to look at otheroptions for its two electric utilities, KPL and KGE. It may form astrategic alliance with other companies, partner with anotherelectric or gas utility or possibly even sell them outright.

Financially troubled energy producer Coho Energy Inc. announcedthat after several modifications, its plan for a bankruptcyreorganization was approved earlier this month by the U.S.Bankruptcy Court for the Northern District of Texas. The confirmedplan is anticipated to begin March 31. Coho could not be reachedfor comment before press time.

The next several years will bring strong support for natural gasprices from gas-fired power generation as the energy industrystrives to catch up with electricity demand, according to DynegyCEO Chuck Watson. “I believe very firmly that over the next 10years we’re going to be in the $2 to $3 [per Mcf] price range. Andif that in fact is where this price in gas is going to vacillate,then I believe that will also speak volumes for the producercommunity to be able to find natural gas to meet growing demand.”

The next several years will bring strong support for natural gasprices from gas-fired power generation as the energy industrystrives to catch up with electricity demand, according to DynegyCEO Chuck Watson. “I believe very firmly that over the next 10years we’re going to be in the $2 to $3 [per Mcf] price range. Andif that in fact is where this price in gas is going to vacillate,then I believe that will also speak volumes for the producercommunity to be able to find natural gas to meet growing demand.”

Although stating several times the FERC-ordered changes to itsexisting capacity-allocation procedures weren’t “necessary orappropriate,” El Paso Natural Gas has proposed a new allocationscheme that would assign “pathed” and “non-pathed” rights for thedelivery of shippers’ gas to the California market.

Prices responded accordingly Tuesday as just about everythingturned bullish for the spot gas market – chilly to very coldweather almost everywhere, rising futures in three importantcategories (gas, heating oil and crude oil), and expectations of alarge withdrawal volume in this afternoon’s storage report.

Heavy merger activity is impacting the wholesale energymarketing segment, causing several of the top-20 marketers of 1998to exit the market, and spurring other companies to acquire assetsand start online trading, a new study has found.

After several years of battling, both in the courts and at FERC,the Commission last week finally approved a version of El PasoNatural Gas’ 1996 rate and capacity-turnback settlement that seemedto satisfy all parties involved. But to get to that point, El Pasowas forced to make some big concessions along the way to quellconcerns.