Southern

A small decline at the MichCon and Consumers Power, and a largerone at the Southern California border were the only exceptions tothe raging bull market that continued to prevail in cash tradingThursday. Otherwise, average price increases ranged from about 50cents in parts of Louisiana to more than $4 at the Chicagocitygate.

Standard & Poor’s held a conference call Wednesday todeclare that Pacific Gas & Electric Co. and Southern CaliforniaEdison risk default and bankruptcy within weeks and are likely tosee their credit ratings fall to junk grades if they don’t get helpfrom regulators within 24 to 48 hours.

It’s virtually certain that the Southern California border indexfor December will be record-setting. It had seemed likely when atrader reported physical border basis at plus 490 last Wednesday (seeDaily GPI, Nov. 27). But things werejust getting started then. The border basis bid-ask spread reachedplus 640-650 on a popular electronic trading service Monday, said awestern source.

Edison Mission Energy (EME), an affiliate of Southern CaliforniaEdison, said it has acquired the rights to a 320 MW naturalgas-fired peaking power facility in Kern County — which could beonline by next August — and is offering to sell the power to thestate.

Edison Mission Energy (EME), an affiliate of Southern California Edison, said it has acquired the rights to a 320 MW natural gas-fired peaking power facility in Kern County — which could be online by next August — and is offering to sell the power to the state.

Rosemead, CA-based Edison International and its SouthernCalifornia Edison utility were hit with a $2.4 billion securitiesfraud class action federal lawsuit last Monday, alleging thecompanies’ violated parts of the federal securities law by bookingas revenue in the second and third quarters more than $2.3 billionin summer wholesale power costs that have yet to be collected.

Rosemead, CA-based Edison International and its SouthernCalifornia Edison utility were hit with a $2.4 billion securitiesfraud class action federal lawsuit Monday, alleging the companies’violated parts of the federal securities law by booking as revenuein the second and third quarters more than $2.3 billion in summerwholesale power costs that have yet to be collected.

With gas prices near $5/MMBtu, oil above $30/bbl and powerprices spiking 700% in Southern California this summer, the signsof struggle in the energy sector are clear. It’s the requiredresponse that still seems a little cloudy.

With gas prices near $5/MMBtu, oil above $30/bbl and powerprices spiking 700% in Southern California this summer, the signsof struggle in the energy sector are clear. It’s the requiredresponse that still seems a little cloudy.