Wholesale

FERC told six California power suppliers Friday that they mustjustify $55 million worth of wholesale electricity sold duringStage Three emergencies in the month of February or pay refunds.

Entergy-Koch LP opened for business yesterday, adding a newwholesale energy trading, transportation and marketing company tothe burgeoning marketplace. Formed by subsidiaries of Entergy Corp.and Koch Industries, Houston-based EKLP will deliver, market andtrade power, natural gas and other energy-related commodities,including weather derivatives through Axia Energy LP, Axia EnergyEurope Ltd. and Gulf South Pipeline Co. LP.

The Energy Information Administration (EIA) again raised itswholesale and retail gas price projections for the winter andconfirmed that gas storage levels at the end of December were lowerby 10% than the previous record low set in 1976.

American Electric Power announced last Thursday it has made amajor move to expand its wholesale natural gas business in theSouthwest, agreeing to acquire the 2.4 Bcf/d Houston Pipe Line(HPL) along with the Bammel storage field, one of the largeststorage fields in North America, from Enron. AEP said since somedetails remain to be worked out, it was not disclosing the terms ofthe transaction at this time. AEP will be acquiring the stock ofHPL and it expects to complete the deal in the next couple months.

American Electric Power Thursday announced it has made a majormove to expand its wholesale natural gas business in the Southwest,agreeing to acquire the 2.4 Bcf/d Houston Pipe Line (HPL) alongwith the Bammel storage field, one of the largest storage fields inNorth America, from Enron. AEP said since some details remain to beworked out, it was not disclosing the terms of the transaction atthis time. AEP will be acquiring the stock of HPL and it expects tocomplete the deal in the next couple months.

The Energy Information Administration (EIA) again raised itswholesale and retail gas price projections for the winter andconfirmed that gas storage levels at the end of December were lowerby 10% than the previous record low set in 1976.

With the growing inadequacies in both natural gas andelectricity delivery systems that emerged as part of the summer’swholesale electricity market problems, California regulatorsThursday ordered separate statewide investigations of bothinfrastructures with an emphasis on the gas side in Sempra Energy’sterritory in the southern end of the state.

Wholesale gas and power sales still appear to be climbingsharply for most major marketers as Enron, Duke Energy and Reliantall posted significant increases in both commodities in thirdquarter. Southern Energy reported that while its third quarterNorth American electricity sales declined from last year’s thirdquarter level, its gas sales enjoyed a sizable increase.

Wholesale gas and power sales still appear to be climbingsharply for most major marketers as Enron and Duke Energy bothposted significant increases in both commodities in third quarter.Southern Energy reported that while its third quarter NorthAmerican electricity sales declined from last year’s third quarterlevel, its gas sales enjoyed a sizable increase.