FirstEnergy and GPU took another step toward sealing theirmerger that would create the nation’s sixth largest investor-ownedelectric system serving 4.3 million customers in Ohio, Pennsylvaniaand New Jersey. The companies’ shareholders overwhelmingly votedyesterday to approve the $12 billion union at concurrentshareholder meetings. The merger still needs approvals from theFederal Energy Regulatory Commission, New Jersey Board of PublicUtilities, Pennsylvania Public Utility Commission, NuclearRegulatory Commission, Federal Communications Commission,Securities and Exchange Commission and the Department of Justiceunder the Hart-Scott-Rodino Act. The companies expect the deal toclose sometime during the summer of 2001. Upon completion of theunion, the new company will adopt the name FirstEnergy and will bea registered holding company under the Public Utility HoldingCompany Act of 1935.
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Virginia Gas’ Shareholders Approve NUI Union
Virginia Gas Co.’s shareholders last week approved a merger planwhich would allow the company to fold under Bedminster, NJ-basedNUI Corp. as a wholly-owned subsidiary. Under the terms of themerger, NUI Corp. will acquire all of Virginia Gas’ shares ofcommon stock for $4.00 per share in NUI common stock. The exchangeratio will be established at a time more near the merger’scompletion. Based on Virginia Gas’ outstanding shares, thetransaction value of the company’s equity is placed at $22 million.
Transportation Notes
Northwest gave shippers notice Friday afternoon of a potential OFOthat would take effect today “if scheduled quantities remain atroughly the same level at Kemmerer as they have for the past twodays.” The pipeline noted that customers scheduled a net 501,982 Dthto flow north through the Kemmerer (WY) Compressor Station forFriday’s gas day and a net 521,204 Dth through the Timely cycle forSaturday’s gas day. Station capacity is 474,000 Dth. The pipelinecontinued: “Cooler temperatures are forecasted for Northwest’s majormarket areas. Further, the price differences among the various supplybasins connected to Northwest’s system continue to favor gas purchasesat receipt points south of Kemmerer. Overscheduling at Kemmererrequires Northwest to withdraw from its Jackson Prairie [storage]inventory. System reliability dictates that withdrawals cannotcontinue indefinitely.” No OFO had been issued as of press time Mondayafternoon, but a Declared Stage II Entitlement (see Daily GPI, Oct. 30) remained in effect.
Cash Price Declines Slow Down Considerably
Traders correctly assumed prices would keep dropping Thursday,but many likely were surprised by how much the overall downtrendslowed. Except for some sizeable declines in the Rockies/PacificNorthwest, most points fell by about a nickel or less, and a fewregistered flat to up a smidgen.
IRS Okays Nymex Demutualization Plan
Nymex got final approval for its demutualization plan from theInternal Revenue Service, which said there would be no taxconsequences for the organization or its members. The plan, whichcalls for the equity in the exchange to remain with the seat-ownersof its Nymex Division, will make the exchange the first in New Yorkto convert from a not-for-profit membership structure to afor-profit organization.
Transportation Notes
Anticipating linepack that would exceed its upper-level target,Pacific Gas & Electric issued a customer-specific OFO fortoday.
Transportation Notes
Sonat notified shippers Saturday that nine groups on its SouthGeorgia system would be under an OFO Type 22 effective Monday untilfurther notice. Cold weather and projected demand on the systemwere cited as reasons for the OFO.
Texas, Mexico Begin Work on Bilateral Deal
Texas and Mexico are working on a collaborative agreement thatwould establish a natural gas and liquids pipeline permittingprocess for potential future projects.
Texas, Mexico Begin Work on Bilateral Agreement
Texas and Mexico are working on a collaborative agreement thatwould establish a natural gas and liquids pipeline permittingprocess for potential future projects.
Transportation Notes
Citing “seasonal efficiency adjustments,” NOVA said it woulddecrease its target linepack by about 177 MMcf in gradualincrements by May 29.
