Terminate

In a mutual agreement, Williams is terminating the sale of some of its South Texas natural gas transmission lines to Enbridge Energy Partners LP, a deal originally set in October 2001. The South Texas system includes unregulated gathering systems and 492 miles of FERC-regulated pipelines. The two regulated pipelines extend from the Texas-Mexico border near Laredo and McAllen, TX, to Transco Station 30, where they connect with Williams’ Transco mainline.

Falcon Gas Storage has reached a settlement with Tractebel Energy Marketing Inc. (TEMI) to terminate a contract that had provided natural gas storage service to TEMI through a central Texas storage facility. The details of the settlement are confidential, according to a Falcon spokesman.

Soaring wholesale gas prices this winter have forced two Maryland retail gas marketers to cut services to some or all of their customers. The Maryland Office of Peoples Counsel (OPC) has issued a consumer alert regarding the gas suppliers, Maryland Natural Gas & Electric/Operators Energy Services and ACN Energy.

Aquila Inc. and Cogentrix Energy Inc. on Friday jointly agreed to terminate an agreement under which Aquila was to acquire Cogentrix. Both companies said that the “current uncertainty of the electric power market made proceeding with the transaction impractical and not in either company’s best interest.” The transaction between Aquila and the Charlotte, NC-based company was announced in April (see NGI, May 6). Aquila said it did not consider the termination part of its “ongoing efforts” to sell $1 billion in non-strategic assets.

Citing current uncertainty in the electric power market, Aquila Inc. and Cogentrix Energy Inc. on Friday jointly agreed to drop the planned acquisition of Cogentrix by Aquila. The companies said that currently “the transaction impractical and not in either company’s best interest.” The transaction between Aquila and the Charlotte, NC-based company was announced in April (see Power Market Today, May 1). Aquila said it did not consider the termination part of its “ongoing efforts” to sell $1 billion in non-strategic assets.

Sierra Pacific Resources and Enron Corp. agreed last week to terminate their purchase and sale agreement for Enron’s wholly owned electric utility subsidiary, Portland General Electric. The termination had been hinted at during a recent conference call with Enron CEO Jeffrey Skilling. The western energy crisis was blamed for the cancellation.

Throwing in the towel on its natural gas choice pilot program after five years of service, Wisconsin Gas Co. (WGC) notified a total of 3,485 customers who were participating in the program that beginning Oct. 31 they would once again have to purchase their gas supply from their utility, WGC.

The Cal-ISO has filed emergency motions with FERC, seeking to terminate the Commission’s grant of market-based authority to Mirant/Southern Energy, Reliant, Dynegy, and Duke unless it imposes a mitigation plan that “fully protects against the exercise of market power in California,” including refunds, plus interest, of charges exceeding cost-based rates going back to May 2000. The filings join similar actions filed earlier against Williams and AES, after a federal court refused to act.

The California Independent System Operator (Cal-ISO) has filed emergency motions with FERC, seeking to terminate the Commission’s grant of market-based authority to Mirant/Southern Energy, Reliant, Dynegy and Duke unless it imposes a mitigation plan that “fully protects against the exercise of market power in California,” including refunds, plus interest, of charges exceeding cost-based rates going back to May 2000. The filings join similar actions filed earlier against Williams Energy and AES, after a federal court refused to act.