Stability

With solutions underway on the regulatory, legislative and financial fronts, PG&E Corp. and its combination utility are optimistic that they will reach several key milestones by mid-year.

Ushering in some stability back into its business, TXU recorded 2003 earnings from continuing operations — before cumulative effect of changes in accounting principles, net of preference stock dividends — of $715 million, or $2.03 per diluted share of common stock. Comparable earnings before extraordinary charges in 2002 were $160 million, or $0.58 per diluted share of common stock.

Ushering in some stability back into its business, TXU recorded 2003 earnings from continuing operations — before cumulative effect of changes in accounting principles, net of preference stock dividends — of $715 million, or $2.03 per diluted share of common stock. Comparable earnings before extraordinary charges in 2002 were $160 million, or $0.58 per diluted share of common stock.

While continuing to be a rare island of financial strength and stability in turbulent energy times, San Diego-based Sempra Energy, faces some large financings and increased risks because of the “California effect” on power market deals, difficulties in energy trading and problems with some South American distribution utility ventures, according to a report issued Tuesday by CreditSights, a London-based independent financial analysis firm.

While continuing to be a rare island of financial strength and stability in turbulent energy times, San Diego-based Sempra Energy, faces some large financings and increased risks because of the “California effect” on power market deals, difficulties in energy trading and problems with some South American distribution utility ventures, according to a report issued Tuesday by CreditSights, a London-based independent financial analysis firm.

The number of energy companies who have the financial and credit stability to carry out trading transactions on their own has plunged sharply since the collapse of Enron Corp. more than a year ago, causing more and more companies to look toward third-party clearing organizations to bear some of the risk and help restore confidence in the markets, said a Morgan Stanley executive Wednesday.

Former Shell Co. financial executive Nick J. Caruso, who once worked with Dynegy Inc.’s new CEO, was appointed CFO and executive vice president of the Houston company last week in a move that analysts see as a positive.

Despite predictions in some national general interest news media concerning natural gas rate hikes this winter, Las Vegas, NV-based Southwest Gas Corp. said Tuesday it does not foresee having to raise its retail charges this winter. In fact, a utility spokesperson said the company doesn’t see the need to raise rates for the next year.

Fort Worth, TX-based XTO Energy Inc. announced that in order to provide stability in the future, it has hedged additional natural gas volumes. The company reported it has now locked in approximately 80% of its projected 2002 natural gas production at an average NYMEX price of $3.88/Mcf.