Legal & regulatory

Judge projects settlement: A judge with the Federal Energy Regulatory Commission (FERC) stated that he expects Williams and four other energy firms to settle the State of California's claim stemming from accusations that the companies overcharged the state for power. Other companies engaged in settlement negotiations include Dynegy, Sempra Energy, Mirant Corp., El Paso Corp., Allegheny Energy, Morgan Stanley Capital Group and Coral Power.

FERC issues NOPR: In a Notice of Proposing Rulemaking (NOPR), the Federal Energy Regulatory Commission (FERC) proposed a series of changes to bring to fruition the kinds of markets envisioned in orders Nos. 888 and 2000. The NOPR is designed to create genuine wholesale competition, efficient transmission systems, the right pricing signals for investment in transmission, generation facilities and demand reduction, and more customer options, according to FERC. Market monitoring and market power mitigation proposals are also critical parts of the proposal for standardized power market rules. The Commission said it undertook standard market design because of persistent and costly problems in the nation's wholesale electric power markets. The NOPR requirements will be mandatory for all public utilities that own, operate or control transmission facilities in interstate commerce. The Commission expects that the requirements of the NOPR will be met through regional transmission organizations (RTOs), but if a public utility chooses not to join an RTO, it will have to contract with an independent entity to perform certain requirements.

FERC's NOPR garners praise, support: The New York Independent System Operator (NYISO) applauded the NOPR, stating that the Commission was outlining a "bright future for America's electric system." The Coalition of Midwest Transmission Customers, the PJM Industrial Customer Coalition, and the NEPOOL Industrial Customer Coalition, groups comprised of large commercial and industrial customers with facilities in the Midwest, Mid-Atlantic, and New England, respectively, announced their general support for FERC's plans. Joe Graves, a member of the management group of PA Consulting Group, summarized PA's response noting that "[the] NOPR will fundamentally change the U.S. electricity industry. We congratulate the FERC on taking this bold and critical step."

Mergers and acquisitions

Pepco, Conectiv complete merger: Potomac Electric Power Co. (Pepco) has completed its merger with Wilmington, Del.-based Conectiv. The two companies will retain their names and continue to operate separately. Each company will be a subsidiary of Pepco Holdings Inc. (PHI), a newly formed holding company with headquarters in Washington, D.C. PHI companies will have combined assets of more than $12 billion and for 2001 had combined revenues of $8 billion.

MidAmerican to get Northern Natural Gas: Dynegy has agreed to sell Northern Natural Gas Co. to MidAmerican Energy Holdings Co. for $928 million in cash, subject to adjustment for working capital changes. Under the terms of this agreement, MidAmerican Energy will acquire all of the common and preferred stock of Northern Natural Gas and will assume $950 million in outstanding debt.

GL&V signs letter of intent to acquire EIMCO: GL&V has signed a letter of intent with Baker Hughes Incorporated to acquire its EIMCO Process Equipment division (EIMCO). Headquartered in Salt Lake City, Utah, EIMCO is a supplier of high-performance technologies for liquid/solid separation processes serving various industries such as chemicals and petrochemicals, mining and minerals, municipal and industrial water treatment, power generation, and waste water treatment. EIMCO had sales of $180 million for its last fiscal year.

Project and contracts

Washington Group selected by Exelon: Washington Group International has been selected by Exelon Nuclear as "engineer of choice" to provide engineering services for its 17 nuclear power generating units at 10 sites in Illinois, Pennsylvania and New Jersey over the next three years. The contract will also include two options for one-year extensions. Washington Group estimated the value of the contract at $20 to $30 million.

Framatome to supply fuel reload: Framtome ANP has been awarded a contract by Energy Northwest to supply nuclear fuel reloads at the Columbia Generating Station in 2003, 2005, 2007, and possibly in two additional cycles in 2009 and 2011. Framatome ANP will also provide an advanced core monitoring system.

Lockwood Greene awarded EPC project: Lockwood Greene has been awarded an engineer, procure and construct (EPC) power project by Jones LG. The Silverhawk Project is a 570 MW plant to be located near Las Vegas. It is scheduled for completion in 29 months, having begun in January with a limited "notice to proceed." The projected commercial operation date is May 31, 2004.

NPPD begins negotiations: The Nebraska Public Power District (NPPD) board of directors gave their approval to begin negotiating a nuclear power plant operating services agreement with the Nuclear Management Company (NMC) to operate Cooper Nuclear Station. The Nuclear Management Company was formed in 1999 by four utilities in the upper Midwest that own and operate eight reactors. Current NMC members include Alliant Energy, Xcel Energy, We Energies, Wisconsin Public Service and Consumers Energy. Each member utility enters into an operating services agreement and is charged by the NMC for the costs of operation and maintenance, along with a pro-rated share for administrative and overhead costs. NPPD will continue to own Cooper and have budget approval.

Calpine's Acadia up and running: Acadia Power Partners LLC, a 50/50 joint venture between Calpine and Cleco Midstream Resources, announced that the Acadia Power Project has entered operations and will generate more than 1,000 MW of power in the region. Construction of the plant began in the summer of 2000.

Executive appointments

Texas-New Mexico Power Co.: Scott Forbes has been promoted to senior vice president, chief financial and accounting officer. Douglas Hobbs is senior vice president, chief operations officer. Joe Hegwood was named assistant controller.

CMS Energy: Thomas J. Webb was appointed executive vice president and chief financial officer.

EEI: Erroll B. Davis, chairman, president and CEO of Alliant Energy Corp., was elected chairman. Allen Franklin, chairman, present and CEO of Southern Co., was elected first vice-chairman; Wayne Brunetti, president and CEO of Xcel Energy, was elected second vice-chairman.

American Public Power Assn.: Mark Crisson, director of utilities for Tacoma Public Utilities, was named chairman of the board of directors. Glenn Cannon, general manager of Waverly Light & Power, was named chair-elect. Jan Shori, general manager of Sacramento Municipal Utilities District, was named vice chair.

APX: Dan Steimle is chief financial officer.