Warns

If FirstEnergy Corp. decides not to sell four predominantly coal-fired power plants in Ohio that it still has on its hands after a proposed sale to NRG Energy fell through this summer, the Ohio-based utility will recognize a one-time, non-cash charge of $35 million in the fourth quarter, a FirstEnergy official told financial analysts last Wednesday.

The report warns that further difficulties could be on the horizon and many existing players may cease to have a viable independent future unless they adapt effectively to the changing market.

CMS Energy posted strong third quarter earnings on Thursday, but the good news came with warnings that the dividend may be cut even more to conserve cash, and that write-offs will affect the fourth quarter’s numbers.

FERC Commissioner Nora Brownell last Thursday said if her agency uncovers instances where a power company engages in retribution against another company that has taken a beef over interconnection, for example, FERC will offer a “swift response” to such retaliation.

Standard & Poor’s issued a warning Thursday that more credit rating declines and possible defaults “loom on the horizon” even though the industry already has experienced its sharpest credit slide in decades.

CMS Energy posted strong third quarter earnings on Thursday, but the good news came with warnings that the dividend may be cut even more to conserve cash, and that write-offs will affect the fourth quarter’s numbers.

El Paso Corp.’s credit ratings teeter on the edge of junk status after a downgrade by Standard & Poor’s Ratings Services on Tuesday. S&P said El Paso remains on CreditWatch with negative implications and could fall deep into junk levels if FERC sides with an administrative law judge in concluding that the company manipulated the California natural gas market.

Serious issues confront the wholesale energy marketplace, and without major improvements and enhancements within the current regulatory structure across the country, “there’s the potential for a hard landing in the supply situation,” a top Reliant Resources Inc. (RRI) official warned Thursday.

The possibility that terrorists could use the Sept. 11 anniversary to attempt another attack against U.S. interests at home or abroad pushed the nation’s state of alert status to high risk for the first time since the system was enacted last spring. Attorney General John Ashcroft said the energy and transportation sectors were considered the most likely targets on Wednesday, and while most of the concern was about possible overseas attacks, private U.S.-based companies within the two sectors were also briefed.