Tells

The Electric Power Supply Association (EPSA) on Monday reported to federal regulators that it has received letters from over 30 power suppliers that sit on EPSA’s board certifying that they have put in place polices and procedures designed to assure their compliance with EPSA’s recently adopted code of ethics for suppliers.

Enron and subsidiary Enron Oil & Gas (EOG) set a plan inmotion Tuesday to formally part ways, as the two agreed on atransaction that would establish EOG as a widely held publiccompany that will be independent of Enron. Under the all-stockagreement, Enron will exchange 62.27 million of its 82.27 millionshares of EOG common stock for EOG’s China and India operations. Inconnection with the exchange, EOG will contribute $600 million incash to one of EOG’s India subsidiaries that will be transferred toEnron.

Defying the Federal Energy Regulatory Commission, California authorities Wednesday challenged the federal panel’s order from last month, which stated that by next year the state must replace its five-member, governor-appointed oversight board at the California Independent System Operator (Cal-ISO) with a larger, “more independent” board of governors. In effect, California officials are telling FERC it has no legal authority to force the state to do so.

San Francisco-based Pacific Gas and Electric Co. last week filed formal objections to the state regulators’ competing reorganization plan in the utility’s ongoing Chapter 11 bankruptcy case in a federal district court. The utility outlined its major objections with an alternative reorganization plan proposed in the court proceedings by the California Public Utilities Commission.

In a saga that could be renamed “The Incredible Shrinking Company,” Enron Corp. told the Securities and Exchange Commission (SEC) in a filing last week that up to 38% of the total assets it listed when it filed for bankruptcy — $24 billion in assets and derivative values — should be erased because of “possible accounting errors or irregularities” that overstated the company’s value. The company also warned of a possible $8-10 billion reduction to unwind some of its derivatives contracts.

Enron Corp. has asked the federal bankruptcy court for an eight-month extension to file a reorganization plan, which would mean that its 350,000-plus creditors may have to wait longer to be paid the $49 billion they are owed. Enron said it needed more time to “develop and implement a viable long-term business plan” that would also allow creditors to evaluate where they stand.

With a meeting with President George W. Bush set for probably Tuesday of next week, Gov. Gray Davis Thursday seemed to be building renewed momentum in his efforts to untangle California’s electricity mess, which becomes more critical as each calendar day pushes closer to summer. He announced a summer power supply deal, a new effort by the state to give more advance notice of rolling blackouts and new initiatives to enter long-term contracts with the state by the largest of the state’s 30 municipal utilities that serve about 25% of the power consumers.

Using the baseball movie Field of Dreams as a metaphor for the energy industry, Ocean Energy Inc.’s CFO William Transier told producers they have to “go the distance” if they believe the North American natural gas market will grow to 30 Tcf within 20 years. By overcoming the challenges, producers can build a “supply of dreams.” But, he warned, it won’t be a shutout.

Using the baseball movie Field of Dreams as a metaphor for the energy industry, Ocean Energy Inc.’s CFO William Transier told producers they have to “go the distance” if they believe the North American natural gas market will grow to 30 Tcf within 20 years. By overcoming the challenges, producers can build a “supply of dreams.” But, he warned, it won’t be a shutout.