Shake

Wall Street’s shake-up this week was felt in three western public sector utility natural gas financing deals where muni electric operations have tried to protect themselves against volatile and higher wholesale gas prices with long-term, prepaid supplies. Standard & Poor’s Ratings Services (S&P) on Monday put each of the deals on CreditWatch with “developing implications.”

Wall Street’s shake-up this month was felt in four western public sector utility natural gas financing deals where muni electric operations have tried to protect themselves against volatile and higher wholesale gas prices with long-term, prepaid supplies.

After a fairly lazy Monday in the markets, energy traders on Tuesday witnessed a shake-up as economic concerns in the United States spurred a significant liquidation in the liquids and natural gas futures. Despite storm uncertainty swirling in the Atlantic, August natural gas put in a low of $11.376 before closing at $11.477, down 48.2 cents from Monday’s finish.

Dominion Resources Inc. is considering a shake up of its wide-ranging business operations that may include a spin-off or sale of its profitable exploration and production (E&P) business and other nonstrategic assets next year. The company plans to refocus on its utility operations, CEO Tom Farrell said Tuesday.

Natural gas buyers say that while having a relationship with their supplier remains important, the exit of yesteryear’s hand-shake agreement and the entrance of trading exchange anonymity and significant personnel turnover have reduced the emphasis on knowing your supplier before entering into a deal.

Natural gas buyers say that while having a relationship with their supplier remains important, the exit of yesteryear’s hand-shake agreement and the entrance of trading exchange anonymity and significant personnel turnover have reduced the emphasis on knowing your supplier before entering into a deal.

Dominion Resources Inc. is considering a shake up of its wide-ranging business operations that may include a spin-off or sale of its profitable exploration and production (E&P) business and some nonstrategic assets next year. The move, said CEO Tom Farrell last week, will allow the company to refocus on its utility operations.

Citing the continuing fallout from the Jack Abramoff lobbying scandal, the shake-up in the House leadership, the extreme partisan atmosphere on Capitol Hill and the mid-term elections later this year, natural gas industry and Capitol Hill officials believe it will be extremely challenging during the second session of the 109th Congress to get legislation passed that would expand access to onshore and offshore energy supplies.

Energy marketers involved in “wash” transactions were almost drowned last week with bad news, as investors bailed on their stocks and regulators called for a good soaping of the industry. It was a dreary week overall, but those taking the worst baths included Dynegy Inc., CMS Energy Corp. and Reliant Energy Inc. By the end of the week, at least three top trading executives at two companies had resigned and the weather showed no sign of clearing anytime soon.