Wholesale

Any attempt by Congress to re-regulate natural gas prices to putan end to the escalation in wholesale prices seen this year wouldbe a “mistake,” said FERC Chairman James Hoecker, even though hebelieves $4 gas is too high.

Although the proposed project is focused primarily on newelectric generation and large industrial/wholesale localdistribution loads, the backers of a proposed 212-mile natural gaspipeline from the Arizona-California border south into northernBaja, Mexico are testing potential market interest for thepipeline’s U.S. segment as part of an open season running throughJuly 14.

HoustonStreet Exchange, a Web-based exchange and portal fortrading wholesale energy products, got another shot in its capitalarm through an equity investment from Conoco Inc., the country’sfifth largest integrated energy company. The investment marks amajor commitment by Conoco to trade crude oil, refined products(such as heating oil, gasoline and jet fuel) and natural gas onHoustonStreet.com.

HoustonStreet Exchange, a Web-based exchange and portal fortrading wholesale energy products, received an equity investmentfrom Conoco Inc., the country’s fifth largest integrated energycompany. The investment marks a major commitment by Conoco to tradecrude oil, refined products (such as heating oil, gasoline and jetfuel) and natural gas on HoustonStreet.com.

Expanding its fast-growing sphere of influence within theindustry, EnronOnline, the Internet-based wholesale energytransaction platform sponsored by Enron, announced that it willhold the country’s first online sulfur dioxide (SO2) emissionsallowance auction from March 13-16.

Sempra Energy Trading, the wholesale energy marketing unit ofSempra Energy, announced a two-year electric and gas managementagreement with the city of Burbank, CA, last week. The agreementmarks a continuation of the type of success that helped turnSempra’s unregulated operations from unprofitable in 1998 to veryprofitable in 1999.

Sempra Energy Trading, the wholesale energy marketing unit ofSempra Energy, announced a two-year electric and gas managementagreement with the city of Burbank, CA, yesterday. The agreementmarks a continuation of the type of success that helped turnSempra’s unregulated operations from unprofitable in 1998 to veryprofitable in 1999.

Calpine Corp. of San Jose, CA, plans to invest $750 million ingeneration to serve Florida’s wholesale power market. The companywill manage its southeastern activities from a new office to beopened in Tampa. Calpine will develop two gas-fired energy centers,including the 1,080 MW Blue Heron Energy Center, to be located inIndian River County outside Vero Beach, and the 540 MW OspreyEnergy Center, to be located in the Auburndale adjacent toCalpine’s existing power facility. Together, the proposed energycenters will produce enough electricity to power nearly two millionFlorida households. The Blue Heron Energy Center will produce up to1,080 MW of electricity and represents an investment ofapproximately $500 million. The $250 million Osprey Energy Centeris designed to generate 540 MW . Construction is planned for 2001,with the Osprey project slated for operation in early 2003, andBlue Heron in mid-2003.

Columbia Energy Group is planning some significant investmentsin wholesale power generation and possibly foreign utilities andhas filed a request with the Securities and Exchange Commission toexpand its authority under the Public Utility Holding Companies Actto make such investments. Columbia told the commission it wants tobe able to invest an amount equal to 100% of its annual earnings.It currently is authorized to invest only 50% of its earnings insuch projects.