Strategy

Western legislators will be leading off one offensive of the newadministration’s energy strategy March 7, with a U.S. HouseResources Committee hearing on restrictions on exploration and gasdevelopment on public lands and the Outer Continental Shelf (OCS)and their impact on power markets.

Western legislators will be leading off one offensive of the newadministration’s energy strategy March 7, with a U.S. HouseResources Committee hearing that explores restrictions on gasdevelopment on public lands and the Outer Continental Shelf (OCS)and their impact on power markets.

Rep. Joe Barton (R-TX) yesterday defended President Bush’senergy policy strategy against criticism that it’s fixated ondrilling in the Alaska artic while giving short shrift to thenation’s more pressing energy concerns.

The continued successful implementation of its aggressive growthstrategy was reflected in the annual and quarterly financialresults of San Jose, CA-based Calpine Corp., which Tuesdayannounced triple-digit percentage increases in revenues, net incomeand earnings-per-share. Net income, before an extraordinary charge,was $324.7 million in 2000, compared to $96.2 million in 1999, a238% increase; revenues were $2.3 billion, compared to $847.7million in 1999, a 171% increase; and earnings-per-share were$1.11, compared to 43 cents/share in 1999, a 158% increase.

Duke Energy, which is targeting its strategy in U.S. growthmarkets, has zeroed in on the right side of the U.S. map, expectingpower generation there to surpass the rest of the country. Thenatural gas giant expects Florida to grow at a rate of 4.5%annually, the Southeast and Texas to grow at 3%; and the East Coastand Upper Midwest to reach 2.5%.

Duke Energy, which is targeting its strategy in U.S. growthmarkets, has zeroed in on the right side of the U.S. map, expectingpower generation there to surpass the rest of the country. Thenatural gas giant expects Florida to grow at a rate of 4.5%annually, the Southeast and Texas to grow at 3%; and the East Coastand Upper Midwest to reach 2.5%.

Blasting two U.S. senators’ plans to set up an energy commissionto investigate recent high natural gas and oil prices, North DakotaGov. Ed Schafer said last week the proposal would result in nothingbut finger pointing, and he asserted that there is no “quick fix”to the nation’s energy problems.

EnronOnline embarked on a new e-commerce strategy last week thatinvolves alliances with independent energy trading platforms. Enronsigned memorandums of understanding with HoustonStreet.com andTrueQuote.com and anticipates signing deals with other platforms inthe near futures. The deals allow Enron to post its prices on theother platforms and to carry out North American natural gas andelectricity transactions through those other sites.

Calpine Corp., the San Jose, CA-based merchant power plantdeveloper/operator, continued its aggressive growth strategy lastweek, announcing separate acquisition and strategic alliances inthe central midsection of the U.S., along with startup anddevelopment of new projects in Texas and California, respectively.This latest growth spurt eventually could make Calpine by 2005 thenation’s largest merchant power plant operator with the youngest,most natural gas-intensive electricity generating network.