Aquila Inc., formerly UtiliCorp United, announced that it will reduce its workforce as part of a corporate restructuring program that will lead to seven state-focused utility operations. The state-based organizational structure is designed to provide greater operational accountability within Aquila’s seven-state utility operations that serve 1.3 million natural gas and electricity customers in Missouri, Kansas, Nebraska, Colorado, Iowa, Michigan and Minnesota.
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Aquila Inc., a wholly-owned subsidiary of UtiliCorp United, on Tuesday named Dean Fuller as its senior vice president and general manager for its midstream services group based in Houston and San Antonio. The company also appointed two more members to the group: Steve Anderson to the position of commercial vice president and Mike Williams to the position of vice president of operations and engineering. Anderson, who has been in the business for more than 25 years, will be responsible for all of Aquila’s midstream commercial activity including supply and business development, while Williams, who has worked in the industry for more than 20 years, will be responsible for the company’s midstream asset operations and integrity, as well as value extraction
People
Aquila Inc., a wholly-owned subsidiary of UtiliCorp United, on Tuesday named Dean Fuller as its senior vice president and general manager for its midstream services group based in Houston and San Antonio. The company also appointed two more members to the group: Steve Anderson to the position of commercial vice president and Mike Williams to the position of vice president of operations and engineering. Anderson, who has been in the business for more than 25 years, will be responsible for all of Aquila’s midstream commercial activity including supply and business development, while Williams, who has worked in the industry for more than 20 years, will be responsible for the company’s midstream asset operations and integrity, as well as value extraction
Aquila Acquires 10 GE Turbines
Aquila Inc., a wholly owned subsidiary of UtiliCorp United,announced yesterday that it has entered into an agreement topurchase an additional 10 natural gas-fired turbines from GeneralElectric (GE). Combined with previously announced agreements,Aquila has ordered a total of 21 turbines over the past 12 months.
Industry Briefs
UtiliCorp United announced yesterday that its wholly-ownedsubsidiary Aquila Energy has changed its name to Aquila, Inc. toreflect Aquila’s increasing participation in markets outside theenergy industry. In addition to trading natural gas and powerthroughout North America and Europe, the company entered thebroadband capacity market last year. It also offers a broad rangeof risk management products and services to its clients, includinga family of weather risk products. Aquila is a Latin word meaningeagle. It also is the name of a constellation containing the starAltair. In some cases this constellation is known as the flyingeagle.
Industry Briefs
Utilicorp United’s Aquila Energy subsidiary was awarded afive-year contract to supply the power needs of Alcoa’s aluminumsmelting facility in Badin, NC. Under the contract, Kansas City,MO-based Aquila will provide risk management for both power and theimpact of weather on the energy production of Alcoa’s generatingunits. Aquila also will support the plant with the power it needsto operate its smelter 24-hours a day, seven days a week, throughthe optimizing of Aquila’s supply, Alcoa’s own generation, and themarket. “This agreement provides a stable and consistent powersupply for Alcoa’s base load energy demand, while effectivelymitigating the weather-related variability of its generatingcapacity,” said Tripp Dunman, senior director of IndustrialOrigination for Aquila.
Industry Briefs
It’s official, last week GPU and UtiliCorp United’s Aquila Energysubsidiary announced that in late December, the companies completedthe transaction that sent GPU International to Aquila Energy for $225million. The sale included the interests that GPU International heldin six independent generating plants and a generating project, whichis currently under development. First announced in October 2000, thefive interests, all in the United States, total approximately 500 MWof capacity (see Daily GPI, Oct. 6,2000). Aquila also receives a 50% interest in the 715 MW project,which is still under development. With this latest deal, Aquila nowowns or controls approximately 4,500 MW of generation underconstruction, in development, or in commercial operation.
Financial Briefs
UtiliCorp United reported a 75% jump in earnings per share forthe third quarter led by strong results from its Aquila Energysubsidiary and an increased contribution from internationalbusinesses. “The energy merchant business continues to be strong,”said CEO Richard C. Green. “Aquila’s performance and the continuedunleashing of value in our international businesses resulting fromthe initial contribution of our recent electric network acquisitionin Canada and the successful initial public offering of our telecombusiness in Australia enabled us to exceed last year’s thirdquarter results.”
EnronOnline Strikes Again
Expanding its fast-growing sphere of influence within theindustry, EnronOnline, the Internet-based wholesale energytransaction platform sponsored by Enron, announced that it willhold the first online sulfur dioxide (SO2) emissions allowanceauction in the U.S. from March 13-16.
Industry Briefs
Record sales and strong growth in international networkoperations produced record financial results for UtiliCorp Unitedlast year. Earnings available for common shares were $160.5million, up 21% from $132.2 million in 1998. “A major factor in our1999 success was the 97% increase in the contribution to earningsbefore interest and taxes (EBIT) from our international networkbusinesses,” said Chairman Richard C. Green. “Results alsobenefited from a major improvement in the price of natural gasliquids, a better year in the gas marketing and trading business,and the results of our investment in Quanta Services, Inc.” Thecompany’s North America Energy Assets segment reported EBIT of$67.2 million in 1999, up $17.7 million compared to 1998. Increasedthroughput volumes, strong natural gas liquids prices and thepartial sale of an ownership interest in an independent powerproject contributed to this 36% increase in EBIT. Late in the firstquarter of 1999, a restructuring plan was implemented by Aquila GasPipeline that decreased operating expenses for the remainder of theyear. In May 1999, Aquila acquired the remaining 18% interest inAQP that it did not already own and AQP ceased trading as a publiccompany. EBIT from marketing and trading was $14.2 million, up $2.4million from 1998. Improved results in gas marketing and stronginitial results from structured finance transactions were partiallyoffset by lower results from marketing of power and hydrocarbonsand $4.7 million in costs associated with moving Aquila’s tradingoperations to downtown Kansas City. Also included in these resultswas a $19.8 million loss related to Aquila’s retail business, whichwas sold in January 2000. That business showed a loss of $6.4million in 1998. Aquila Energy sold 10.4 Bcf/d of gas last yearcompared to 9.6 Bcf/d in 1998. Power sales grew to 236.5 millionMWh compared to 121.2 million MWh