Structure

Attempting to better organize its businesses and release hiddenvalue in its operations, Western Resources said yesterday it willseparate its electric utility businesses under a differentcorporate umbrella from its non-electric affiliates. Both companieswill be public entities. The separation is expected occur through avoluntary exchange offer expected to be completed prior toyear-end.

Significant changes to Enron’s corporate structure, includingthe sale of Enron Oil & Gas and planned divestiture of PortlandGeneral Electric, made the headlines in 1999, but its traditionaloperations more than carried the company flag. Enron posted awhopping 37% increase in net income to $957 million and an 18% risein earnings per share to $1.18 for the year. Its revenues rose 28%to $40 billion and its marketed volumes jumped 19% to 32 trillionBtue/d. North American gas sales volumes reached 13 Bcf/d up from10.6 Bcf/d while U.S. power sales fell slightly to 380.5 millionMWh from 401.8 million MWh in 1998.

Exxon Mobil launched a new organization structure built on aconcept of eleven separate global businesses designed to allow thecompany to compete more effectively in a changing worldwide energyindustry. Lee Raymond, CEO, said by mid-December the company willannounce a revised forecast of merger benefits that will likelyexceed the $2.8 billion annual level announced last year.

El Paso Energy Corp. announced the completion of its post-mergercorporate structure last week. Through normal attrition, earlyretirement and 607 layoffs, the work force has been pared down from5,500 to 4,575. The action is part of a company-wide plan toimplement the optimal corporate organization for the future, ElPaso said, and the company expects to save in excess of $100million in the first full year after the merger due to thesemeasures.

The Federal Energy Regulatory Commission has outlined thestructure of its new Office of Markets, Tariffs and Rates (OMTR),part of its FERC First reorganization. The office, headed by DanielL. Larcamp, will include three geographic divisions of rates andtariffs for gas and electric services. Michael A. Coleman, from theOffice of Electric Power Regulation will serve as director of thewest division; Robert J. Cupina, from the Office of PipelineRegulation (OPR) will serve as director of the central division andAlice Fernandez from OPR will serve as director of the Eastdivision.

TransCanada PipeLines, led by interim CEO Doug Baldwin, unveileda new organizational structure Friday, aimed at “building greatervalue for shareholders from its pipeline, power generation,midstream and marketing infrastructure across Canada and thenorthern tier of the United States.”

TransCanada PipeLines, led by interim CEO Doug Baldwin, unveiled a new organizational structure Friday, aimed at “building greater value for shareholders from its pipeline, power generation, midstream and marketing infrastructure across Canada and the northern tier of the United States.”