Week

Connecticut regulators last week issued a draft decision thattakes a mid-course review of commercial and industrial natural gasunbundling in an effort to fine-tune the state’s two-year-oldprogram. The draft also was seen as a “first step” towards possiblyachieving customer choice in the state’s residential gas marketdown the road.

FERC last week gave the go-ahead for Destin Pipeline Co. L.L.C.to build lateral pipeline facilities that would connect offshoreproduction with its new 1 Bcf/d mainline system for eventualdelivery into downstream markets.

The D.C. Circuit Court of Appeals last week upheld two orders inwhich FERC denied a small-customer discount transportation rate toNephi, UT, a municipal distribution customer on Questar Pipeline.

MCN Energy Group announced last week it plans to exit theexploration business, and expects to take a second quarter chargeon earnings of $225 million because of low oil and gas prices andthe under-performance of certain exploration properties in theMidcontinent and Gulf Coast regions.

The $6.2 billion merger of Enova Corp. and Pacific Enterprisesfinally became official last week following approval of theSecurities and Exchange Commission. The merger creates SempraEnergy, a new San Diego-based Fortune 500 energy services holdingcompany with 12,000 employees, $10 billion in assets and thelargest regulated utility customer base in the nation.

FERC last week gave New York utilities a conditional go-ahead tocreate the New York Independent System Operator (NYISO), making itthe fourth ISO that the Commission has approved so far.

In a dramatic step toward the development of a whole new way ofgenerating electricity, Plug Power demonstrated last week the firstresidential fuel cell to successfully power a home.

The Maritimes & Northeast Pipeline project last week crossedanother major milestone on its way toward bringing gas toNortheastern markets from Atlantic Canada for the first time inNovember 1999. FERC issued a final environmental impact statementon the 200-mile U.S. upstream portion of the system, concluding itwould have limited adverse environmental impact with therecommended mitigation.

The futures market continued to receive strong technicalfollow-through buying on Monday, adding to gains posted last weekthat some analysts feel could be signaling the end to the two-monthdowntrend in natural gas prices.