The New York State Public Service Commission last week approved several items that it says will ultimately benefit consumers, including a request to transfer ownership of two electricity generating facilities in the state and two items that would give refunds to natural gas customers this winter. PSC approved a joint request from Central Hudson Gas and Electric Corp., Consolidated Edison Co. of New York Inc., Niagara Mohawk Power Corp. and Dynegy Power Corp. to transfer ownership of the Danskammer and Roseton electricity generating facilities near Newburgh, NY to Dynegy for $903 million. Net proceeds from the sale, which will amount to about $364 million after deductions, would be used to benefit ratepayers of the three utilities involved. Danskammer and Roseton are fossil-fueled generating plants located adjacent to each other on the Hudson River. Danskammer is capable of generating 500 MW of electricity; Roseton is capable of producing 1,200 MW. NYPSC also approved an interim natural gas service plan to continue the competitive restructuring efforts of two New York downstate natural gas distribution companies, KeySpan Energy Delivery New York and KeySpan Energy Delivery Long Island. The interim plan, in effect from Jan. 1, 2001 through June 30, 2001, maintains current rates for delivery service and provides customers with a one-time winter bill credit if the costs of purchasing gas for customers in December exceed a predetermined price threshold. The commission also approved plans by Niagara Mohawk Power Corp. and Rochester Gas and Electric Corp. to accelerate refunds this winter to natural gas customers totaling $14.1 million for Niagara Mohawk and $5.7 million for Rochester Gas. Con Ed also was granted a delay on a gas surcharge until after the winter season and the commission approved another request by Niagara Mohawk to provide $110 in bill credits this winter to eligible low-income customers who heat with natural gas.
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Tetco Plans Market Area Expansion
Texas Eastern Transmission Corp. (Tetco) is holding open seasonthrough Jan. 12 for a pipeline expansion in its M3 market area inthe Mid-Atlantic and Northeast. The project will combine existingunsubscribed capacity with incremental firm capacity to create alow-cost expansion option for Texas Eastern shippers, the pipelinesaid.
California Sees Light at the End of a Very Dark Week
As California kept its string of Stage One and Two power alertsgoing through most of last week, the plot in its now six-month-olddrama thickened with an endless array of actors and subplots.Without a break for intermission, the spotlight shifted to federalofficials in Washington, DC, late in the week for the second act ofsteps that might bring some order to the chaotic western wholesaleelectricity market covering about a dozen states.
UtiliCorp to Spin off Aquila Next Year
Unable to find a suitable generation partner for its high flying trading arm, UtiliCorp United Inc. instead will hold an initial public offering for a portion of subsidiary Aquila Energy Corp. and then spin off the remaining shares next year to its shareholders in a tax-free distribution. The result will be two stand-alone publicly traded companies, both based in Kansas City.
Only West Coast Misses Out on Price Rebounds
A revised National Weather Service forecast, expanding theprediction of below normal temperatures for the Christmas weekendto the entire United States except for the sparsely populated UpperPlains, kept most prices from softening Friday, as some hadanticipated. Except for the still-most-expensive West Coast market,all other points realized gains from about a dime (San Juan Basin)to a little more than 50 cents (Northern Natural Gas market area).
California Regulators, Utilities Seek FERC Action on Gas Prices
California consumers, regulators and utilities have expanded their complaints against sky-high power prices to include natural gas prices, leveling accusations against El Paso Natural Gas and demanding federal intervention in the 15-year old competitive natural gas market.
Cinergy Acquires 1,000 MW From Enron
Cinergy Corp. yesterday reported that its non-regulated affiliate, Cinergy Capital & Trading, is in the process of adding almost 1,000 MW of electricity to its generating portfolio in the southeastern United States through an acquisition of two of Enron North America’s power plants.
Buoyed by Weather and Storage, Bulls Battle Back Friday
Fueled by another round of bullish weather forecasts andfollowing on the heels of gains achieved in Thursday night’s Accesstrading session, natural gas spiraled higher Friday, as traderstook back ground lost earlier in the week. When the dust hadcleared and the orders were counted in the data room at Nymex, theJanuary contract was 98.3 cents higher on the day, but still off18.8 cents for the week.
Transco Gets OK to Build Half of MarketLink
FERC last week cleared the way for Transcontinental Gas PipeLine (Transco) to begin building two phases of its controversialMarketLink project that would expand its existing transportationsystem in western Pennsylvania and northern New Jersey, but itbarred the pipeline from proceeding with a third phase until it canback up that part of the project with executed contracts.
Skilling Named Enron’s New CEO; Lay Chairman
Jeffrey Skilling, Enron Corp.’s front man for its energy riskmanagement business and commodity trading growth, will add a CEO inFebruary to his title of president and CFO following a vote by thecompany’s board of directors last week. Current CEO Kenneth Laywill remain chairman and a full-time employee and once again triedto dispel rumors that he may be tapped as a member ofPresident-Elect George W. Bush’s cabinet.
