Victory

In the midst of a concerted public relations/lobbying blitz by their cornered regulatory prey, El Paso Corp., lawyers who have built the case for alleged market power abuses by the Houston-based gas pipeline giant are unabashedly confident that they will get a favorable decision from the Federal Energy Regulatory Commission by the end of this year.

In a victory for laid-off employees of bankrupt Enron Corp., U.S. Trustee Carolyn Schwartz informed attorneys for the Severed Enron Employees Coalition (SEEC) on Thursday that she will appoint an “official committee” to focus on their issues. The committee would have basically the same standing as the 15-member Official Committee of Unsecured Creditors set up to oversee Enron’s assets and debts, which could give the former workers a better chance of recovering benefits.

With natural gas and power shortages looming, Western HubProperties won significant victory from California regulators, whoover-rode both internal opposition and vociferous local oppositionfrom nearby property owners to give conditional approval to aproposed $80 million underground natural gas storage field inNorthern California.

In what may turn out to be a Pyrrhic victory, bulls weresuccessful on two fronts Friday — testing resistance at $3.00 andposting a gain for the third straight session. However, thoseachievements may have come at a price because even dyed in the woolbulls were shaking their heads after watching heavy selling enterthe market once prices reached over the $3.00 mark.

In what one gas industry official close to the case called a”major victory,” the District of Columbia Circuit Court of Appealsupheld the Environmental Protection Agency’s program for reducingnitrogen oxide (NOx) emissions for 19 eastern and midwestern statesplus the District of Columbia last week. Barring any furtherappeals, the NOx SIP Call rule will be added to the Clean Air Act,requiring the states included in it to reduce their NOx emissionsby a total of 1.2 million tons, or 28% of current levels, annually.

In what may have been a Pyrrhic victory, bears were successfulpushing futures prices lower Wednesday amid reconfirmed reports ofwarm weather expected this weekend and next week. Prices for theMarch contract finished the session down 5.4 cents at $2.564 inwhat several sources called a lackluster trading session.

In what may have been a Pyrrhic victory for bulls, natural gasprices cruised to its seventh straight advance yesterday as tradeand local buyers took the February contract to its highest level inalmost a month.

The Georgia Public Service Commission (GPSC) unanimouslyapproved an accounting order earlier this week, which outlined theprocedure by which AGL Resources could file for stranded costrecovery. The parent of the deregulating Atlanta Gas Light willcompletely exit the merchant function next month.

Columbia Energy Group won a small victory last week when the U.S. District Court for the District of Delaware denied NiSource’s motion for expedited discovery in its federal case against Columbia. Meanwhile, NiSource raised legal pressure with yet another suit filed in the state Chancery Court in Delaware. By increasing the legal pressure while pushing its $68/share tender offer to Columbia shareholders, NiSource believes it can force Columbia officials to the negotiating table.