Acknowledging that the state’s cost for spot wholesale power supplies has increased significantly since the PG&E utility bankruptcy filing, the newest member of the California Public Utilities Commission lashed out at merchant generators and power suppliers last week for “manipulating” the western wholesale electricity market and extracting billions of dollars out of the states’ economies. If the situation does not ease soon, Gov. Gray Davis is likely to seize some of the private sector power plants, according to Geoffery Brown, a former San Francisco public defender named to the CPUC by Davis earlier this year.
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CPUC Commmissioner Blasts Generators for ‘Manipulating’ Market
Acknowledging that the state’s cost for spot wholesale power supplies has increased significantly since the PG&E utility bankruptcy filing, the newest member of the California Public Utilities Commission Wednesday lashed out at merchant generators and power suppliers for “manipulating” the western wholesale electricity market and extracting billions of dollars out of the states’ economies. If the situation does not ease soon, Gov. Gray Davis is likely to seize some of the private sector power plants, according to Geoffery Brown, a former San Francisco public defender named to the CPUC by Davis earlier this year.
KMP to Beat Significantly Consensus Estimates
Kinder Morgan Energy Partners LP (KMP), owner and operator ofone of the largest product pipeline systems in the country,reported on Thursday that it expects to substantially exceed theconsensus first quarter earnings per unit estimate of $0.71 andyear 2001 earnings per unit estimate of $2.98. The company alsosaid it expects to increase the cash distribution per common unitfor the first quarter from $0.95 to $1.00.
Prebon, Amerex, Bank of NY Form New OTC Clearinghouse
The Bank of New York, Prebon Yamane and Amerex announced a newconcept for the energy industry that they believe willsignificantly boost market liquidity and efficiency. They haveformed a new joint venture called EnergyClear, which will createthe first industry-sponsored clearinghouse to offer comparison,netting and settlement of wholesale energy contracts for theover-the-counter (OTC) marketplace.
EnronOnline Allies with HoustonStreet, TrueQuote
EnronOnline significantly expanded its reach yesterday byforming alliances with HoustonStreet.com and TrueQuote.com, twoenergy trading platforms. Enron signed memorandums of understandingwith both companies to extend EnronOnline pricing for NorthAmerican natural gas and electricity to both.
Industry Briefs
KeySpan Energy announced that its earnings are significantlyahead of analysts’ estimates for the first quarter and could be upto 7% higher for calendar year 2000. The First Call averageestimate is currently $1.87 per share for the year 2000, thecompany said. The boost has been caused by many factors Keyspansaid including: Strong growth in our gas market, resulting from anaggressive market strategy in the Company’s new Long Island market;Electric demand and gas demand hit record levels in January, givingKeySpan highest winter send-out days in both electricity and gas;and the benefit of substantial reductions in O&M expenses,amounting to $110 million. In merger-related news, KeySpan saidthat the merger with Eastern Enterprises, which was announced lastyear, is proceeding on schedule and is expected to be completed bythe Fall.
Stars Aligning For BP Amoco-FTC Agreement
Skies brightened significantly last week for the merger of BPAmoco and Atlantic Richfield Co. (ARCO), with the companiesannouncing moves to assuage the Federal Trade Commission (FTC), butfederal regulators still have yet to give their blessing to theunion. And high gasoline prices have at least one legislatorcalling for strict curbs on oil patch mega-mergers.
BP Amoco-Arco Faces State, Federal Trouble
The merger of BP Amoco and Atlantic Richfield Co. (Arco) becamesignificantly more complicated last week. Now the companies facefederal and state opposition, but they’ve added one formerchallenger to their camp.
Dynegy Finalizes Merger, Unloads Assets
The shape of Dynegy changed significantly last week with thecompletion of the company’s merger with Illinova and the unloadingof some major Midcontinent gathering and processing assets
Outsourcing Growing in Pipes & Wires
Outsourcing of pipes and wires energy delivery lines of businessin North America will increase significantly over the next fouryears, according to a study conducted by META Group’s EnergyInformation Strategies (EIS).