Toward

The European Commission has approved Chevron Corp.’s purchase ofTexaco Inc., clearing one hurdle on its road toward a successfulmerger by possibly this summer. Still to come is the lengthy U.S.approval process, including approval by the U.S. Federal TradeCommission. In a statement, the European Commission said that “thenumber of areas where the companies’ activities overlap in Europeis limited and where they do (overlap), the combined market sharesremain below 15%.” Chevron has sold most of its Europeanoperations: some in 1984 to Texaco, another group to RoyalDutch/Shell Group in 1997 and some to Petroplus in 1998. SanFrancisco-based Chevron agreed to buy Texaco, based in WhitePlains, NY, last October for $35.1 billion in stock and assumeddebt of $7.5 billion (see Daily GPI, Oct. 17, 2000).

Depending on your perspective, California either moved towardfuture solutions to its nagging energy crisis or took several stepsbackward yesterday with the launch of its electricity bulk buyingprogram for long-term, fixed-price supplies.

Energy Secretary nominee Spencer Abraham said during his Senateconfirmation hearing last Thursday that the grave power crisisfacing California would be a priority of the Bush White House. Butno sooner had those words been uttered than incoming PresidentGeorge W. Bush essentially wiped his hands clean of the state’sproblems. Key Senate Republicans as well urged Abraham and the BushWhite House to take a hands-off approach to the continuing crisis.

Pacific Gas and Electric Co., the giant San Francisco, CA-basedutility branch of PG&E Corp., acknowledged Tuesday that it isin danger of running short of gas supplies later this winter due tothe venerable utility’s electricity-induced credit woes spillingover to its natural gas operations. “Most” of the company’s 30 to40 interstate gas suppliers are refusing to sell to the giantutility beyond existing contract terms, some of which expire withina few weeks, according to a PG&E utility spokesperson.

Several consumer groups last week took steps toward pushing forre-regulation nationally and in several states, denouncing effortsto deregulate the electricity industry as flawed.

Several consumer groups last week took steps toward pushing forre-regulation nationally and in states, denouncing efforts toderegulate the electricity industry as flawed.

In what appears to be a trend toward issuing stock in generationsubsidiaries, Southern Company’s CEO A.W. “Bill” Dahlberg announcedthat he will seek approval from the board of directors tocompletely spin-off the company’s Southern Energy subsidiary.

In what appears to be a trend toward issuing stock in generationsubsidiaries, Southern Company’s CEO A.W. “Bill” Dahlberg announcedthat he will seek approval from the board of directors tocompletely spin-off the company’s Southern Energy subsidiary.

FirstEnergy and GPU took another step toward sealing theirmerger that would create the nation’s sixth largest investor-ownedelectric system serving 4.3 million customers in Ohio, Pennsylvaniaand New Jersey. The companies’ shareholders overwhelmingly votedyesterday to approve the $12 billion union at concurrentshareholder meetings. The merger still needs approvals from theFederal Energy Regulatory Commission, New Jersey Board of PublicUtilities, Pennsylvania Public Utility Commission, NuclearRegulatory Commission, Federal Communications Commission,Securities and Exchange Commission and the Department of Justiceunder the Hart-Scott-Rodino Act. The companies expect the deal toclose sometime during the summer of 2001. Upon completion of theunion, the new company will adopt the name FirstEnergy and will bea registered holding company under the Public Utility HoldingCompany Act of 1935.