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Enron Mail |
Energy marketers make the money, get the blame POWER CRUNCH: But probes
likely to find it's all legal in deregulation era The News Tribune, 02/13/2001 Enron Announces Dividends PR Newswire, 02/13/2001 EOG Resources, Inc. Declares Increase of 14 Percent on Quarterly Dividend On Common Stock PR Newswire, 02/13/2001 EOG Resources, Inc. Declares Dividends on Preferred Stock PR Newswire, 02/13/2001 Azurix says to end dispute with Argentine province Reuters, 02/13/2001 USA: US Stockpile awards 3,400 tonnes lead to 3 firms. Reuters English News Service, 02/13/2001 Marathon Oil in race for Enron stake in oil fields The Financial Express, 02/13/2001 ------------------------------------------------------------------------------ ------------------------------------------- Front Page Energy marketers make the money, get the blame POWER CRUNCH: But probes likely to find it's all legal in deregulation era Les Blumenthal The News Tribune 02/13/2001 The News Tribune Tacoma, WA South Sound A1 (Copyright 2001) WASHINGTON - Their names may not appear on your electric bill, but they are the largest energy marketers in the nation, and they're cashing in on the skyrocketing electric rates in the Northwest. As ratepayers throughout the West are socked with double-digit increases in their bills, regulators throughout the region are looking into suspicions that this new breed of energy companies has manipulated the overheated market to maximize profits. So far, there is no evidence they are doing anything illegal. California Gov. Gray Davis has called them pirates and plunderers. The San Francisco city attorney has filed a $1 billion lawsuit against them, saying they are playing with "marked cards" and looking to make a "quick buck" at the expense of consumers. The Federal Energy Regulatory Commission is investigating, as are state regulators in Washington, Oregon and California. "Based on hints of manipulated energy supplies and allegations of price manipulation, I think we owe it to Washington utilities and consumers to make sure the soaring prices are not the result of illegal practices," Washington Attorney General Christine Gregoire said in announcing her office's antitrust division would investigate. The power marketers, though, say they've done nothing wrong. The real problem, they say, is there simply isn't enough power being generated to meet demand. The players include Enron Corp., Dynegy Inc., and Reliant Energy, all of Houston; Duke Energy of Charlotte, N.C.; Southern Energy of Atlanta; AES Inc. of Arlington, Va., and Calpine Corp. of San Jose, Calif. Enron's profits were up 34 percent in last year's fourth quarter. Duke's fourth-quarter revenues doubled; Dynegy's earnings more than doubled in the fourth quarter. "When we hear about these stunning profit increases, I think we need to investigate," Gregoire said. Corporate raider Charles Hurwitz also could profit handsomely. His Maxxam Inc. owns Kaiser Aluminum Corp., which has shut down its Washington mills and, under a special contract provision, is reselling power on the open market for much more than it paid the Bonneville Power Administration, the federal agency that sells hydropower generated at dams along the Columbia and Snake rivers. Hurwitz could make half a billion dollars before the contracts expire this fall. And the holding companies of two huge California utilities on the edge of bankruptcy have made billions of dollars off the West Coast electricity market through a financial juggling act. Audits by outside auditors hired by state regulators showed Southern California Edison and Pacific Gas & Electric turned over billions to their holding companies, money that could have been used to ease the cash crunch they now face. The utilities say they were engaged in accepted business practices when they transferred the money, which the parent companies used for such things as stockholder dividends and stock buybacks. "Is it capitalism or profiteering?" said Ed Mosey, a BPA spokesman. "The very complexity of these markets allows these companies to hide in the grass." A few years ago, the energy industry was tightly regulated and utilities and generators were allowed to recover their costs and make a decent return on their investment. But beginning with the deregulation of wholesale electricity markets in 1992, energy marketers, generators, independent power producers and others became major players. Regulated utilities opened computer-driven trading rooms as they scrambled to find the cheapest electricity available. Now electricity is sold on spot and longer-term markets, traded for electricity available in other parts of the country or even swapped for natural gas. "Power can pass through three or four hands before you even buy it," Tacoma Power Superintendent Steve Klein said. The latest jolts in the Northwest market began last summer when California experienced severe shortages and prices soared. Because the entire West Coast is connected by one power grid, the rate shocks were felt in the Northwest and grew even more as California's problems deepened and a winter drought prompted fears of a near-record low runoff in the Columbia and Snake rivers. Some called it a "perfect storm" scenario, and BPA saw the price it paid for power in January grow sixfold over the previous year. "We will buy from anyone who will sell to us at a reasonable prices, but the problem is finding a reasonable price," said BPA Administrator Steve Wright. "The marketers are recovering a substantial amount of money." The same companies making money in California are making money in the Northwest. "These are for-profit companies," said Mark Crisson, who heads Tacoma Power. "These folks don't answer to a (state regulatory) commission and they don't answer to ratepayers. They answer to their stockholders and I've seen no effort by them to minimize prices." Critics say the energy marketers have manipulated the market by shutting down generating facilities in California in an effort to restrict the supply and drive prices up. According to some utility executives, generating plants are usually off-line 5 percent of the time because of unforeseen problems and that an off-line average of 10 percent to 15 percent would be considered high. During some months, certain California generating plants have been off-line 30 percent to 50 percent of the time. "We are seeing abnormal rates," Crisson said. Asked whether he thought the companies were manipulating, or gaming, the market, Crisson said, "I would stop short of accusing them of that, but there is something funny going on." The California generators and marketers say the outages have been the result of running aging plants hard in an effort to supply power in a tight market. "We think these allegations are a little unfair," said Randy Wheeless, a spokesman for Duke Energy, which operates four power plants in California. Despite several investigations, Wheeless said, his and other companies have always been cleared. "We're trying to feed the market, not manipulate it," he said. "There isn't any one single person or company to blame. The remedy is to get more generation on line." Enron doesn't own any power plants in California but sells and trades energy throughout the West. Spokesman Mark Palmer agreed that the key to solving the current crisis is adding more generation and truly deregulating the California market so there is real competition. "Everyone is scrambling for power," he said. - - - * Staff writer Les Blumenthal covers Northwest issues in Congress. Reach him at 1-202-383-0008 or lblumenthal@mcclatchydc.com. Enron Announces Dividends 02/13/2001 PR Newswire (Copyright © 2001, PR Newswire) HOUSTON, Feb. 13 /PRNewswire/ -- The Enron Corp. (NYSE: ENE) Board of Directors declared today a regular quarterly dividend of $0.125 per share on the corporation's common stock payable on March 20, 2001, to stockholders of record as of March 1, 2001. The indicated annual rate is $0.50 per share. The Board also declared a regular quarterly dividend of $3.413 on the Cumulative Second Preferred Convertible Stock payable April 2, 2001 to preferred stockholders of record as of March 16, 2001. The indicated annual rate is $13.652 per share. Enron Capital LLC, a wholly owned subsidiary of Enron Corp., declared its monthly dividend of $0.166667 on the Enron Capital LLC 8% Cumulative Guaranteed Monthly Income Preferred Shares for the month of February, payable Feb. 28, 2001 to stockholders of record as of Feb. 27, 2001. The annual dividend rate is $2.00. Enron Capital Resources, L.P., a Delaware limited partnership in which Enron Corp. is the sole general partner, declared its monthly dividend of $0.1875 on the Enron Capital Resources, L.P. 9% Cumulative Preferred Securities, Series A, for the month of February, payable Feb. 28, 2001 to holders of record as of Feb. 27, 2000. The annual dividend rate is $2.25. Enron is one of the world's leading electricity, natural gas and communications companies. The company, with revenues of $101 billion in 2000, markets electricity and natural gas, delivers physical commodities and financial and risk management services to customers around the world, and has developed an intelligent network platform to facilitate online business. Fortune magazine has named Enron "America's Most Innovative Company" for six consecutive years. Enron's Internet address is www.enron.com. The stock is traded under the ticker symbol "ENE". /CONTACT: Karen Denne of Enron Corp., 713-853-9757/ 16:00 EST EOG Resources, Inc. Declares Increase of 14 Percent on Quarterly Dividend On Common Stock 02/13/2001 PR Newswire (Copyright © 2001, PR Newswire) HOUSTON, Feb. 13 /PRNewswire/ -- The Board of Directors of EOG Resources, Inc. (NYSE: EOG) (EOG) has declared an increase in the regular quarterly dividend to $.04 per share on the common stock of the company, payable April 30, 2001, to shareholders of record as of April 16, 2001. The indicated annual rate is $.16. "By increasing the dividend, we are signaling to shareholders that EOG remains aligned with their interests," said Mark Papa, EOG Chairman and Chief Executive Officer. "Last year we generated over $300 million of cash flow beyond our capital program, and at current prices, we expect to generate significant cash flow beyond our capital program again this year." EOG last increased its dividend from $.12 per share to $.14 per share during the first quarter 2000. EOG Resources, Inc., formerly Enron Oil & Gas Company, is among the largest independent (non-integrated) oil and gas companies in the United States, with operations and substantial reserves in the U.S., Canada and Trinidad. EOG common stock is listed on the New York Stock Exchange and is traded under the ticker symbol, "EOG". This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although EOG believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. The forward looking statements are given as of the date of this document only and are based on current available information and expectations. EOG does not undertake any obligation to update these forward looking statements as conditions change or other information becomes available. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include, but are not limited to, the timing and extent of changes in reserve quantities and commodity prices for crude oil, natural gas and related products and interest rates, the extent of EOG's success in discovering, developing, producing and marketing reserves and in acquiring oil and gas properties, uncertainties and changes associated with international projects and operations including reserve estimates, markets, contract terms, construction, financing availability, operating costs, and political developments around the world, and conditions of the capital and equity markets during the periods covered by the forward looking statements. /CONTACT: Maire A. Baldwin of EOG Resources, Inc., 713-651-6EOG, or 713-651-6364/ 15:40 EST EOG Resources, Inc. Declares Dividends on Preferred Stock 02/13/2001 PR Newswire (Copyright © 2001, PR Newswire) HOUSTON, Feb. 13 /PRNewswire/ -- The Board of Directors of EOG Resources, Inc. (NYSE: EOG) (EOG) has declared a dividend of $1,710.00 per share on the Series D Preferred Stock of the company, payable March 15, 2001 to shareholders of record as of March 14, 2001. The Board also declared a dividend of $17.9875 per share on the Series B Preferred Stock of the company, payable March 15, 2001 to shareholders of record as of March 8, 2001. EOG Resources, Inc., formerly Enron Oil & Gas Company, is among the largest independent (non-integrated) oil and gas companies in the United States, with operations and substantial reserves in the U.S., Canada and Trinidad. EOG common stock is listed on the New York Stock Exchange and is traded under the ticker symbol, "EOG". /CONTACT: Maire A. Baldwin of EOG Resources, Inc., 713-651-6EOG, or 713-651-6364/ 15:40 EST Azurix says to end dispute with Argentine province BUENOS AIRES, Feb 13 (Reuters) - U.S. water company Azurix Corp. (NYSE:AZX - news) said Tuesday it would formally agree this week to improve its Argentine water services after it was accused of providing poor service to Buenos Aires province. Azurix, an affiliate of energy supplier Enron Corp. (NYSE:ENE - news) which said in January it would take a fourth-quarter charge of $470 million on its Argentine operations, had previously fended off the criticism by blaming Buenos Aires province's poor infrastructure. ``This week an agreement will be signed,'' an Azurix spokesman told Reuters. ``The cost of the projects during 2001 will be less than $30 million.'' The dispute climaxed in January, when Buenos Aires province said it would review Azurix's 30-year, $439 million water and wastewater service contract. It said there were widespread customer complaints, such as low water pressure and algae contamination in the city's reservoir. Azurix argued that the province did not provide the necessary infrastructure or allow the company to charge fair market rates for services. Shares of Azurix added 1 cent at $8.32 Tuesday on the New York Stock Exchange. USA: US Stockpile awards 3,400 tonnes lead to 3 firms. 02/13/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Feb 13 (Reuters) - The U.S. Defense National Stockpile Center said Tuesday it awarded approximately 3,400 metric tonnes of lead to three firms in its latest solicitation of offers. Ney Smelting & Refining Co. Inc., Lead Products Co. Inc. and Enron Metals & Commodity Corp. received the material for an estimated market value of $1.6 million. Marathon Oil in race for Enron stake in oil fields The Financial Express, 02/13/2001 Anupama Airy & Kavita Bhaskaran New Delhi, Feb 13: The US-based energy major, Marathon Oil and Gas Company has emerged as one of the strong contenders for picking up Enron's 30 per cent stake in the Mukta, Panna and Tapti oil and gas fields. Top industry sources disclosed that Marathon has also been shortlisted in the first round of bidding along with Reliance and ONGC for buying Enron's stake in these fields. Whereas, both Reliance and ONGC are part of the consortia already developing these fields, Marathon is the only company which has been shortlisted outside the consortia. "Currently, Marathon is doing the due diligence of Enron's assets following which it will submit the financial bids along with other shortlisted parties," the sources said. Sources informed that Marathon possesses some of the best oil and gas exploration technologies in the world, and, at one point of time, even ONGC was in talks with Marathon for acquiring its technology. Asked if there was any possibility of ONGC and Marathon joining hands for submission of financial bids, industry sources said both the companies have decided to bid independently. Moreover, for all these discovered fields, ONGC does not require any financial or technical support from others. Reliance, however, is not qualified to be the operator of oil and gas fields as it does not have sufficient experience in the area. On the other hand, Marathon possess strong technical skills in this area and, if selected, can easily qualify as an operator.ONGC is the biggest partner in the consortium in terms of its equity stake. It has 40 per cent with the remaining 60 per cent, shared equally between Reliance Industries and Enron Oil and Gas India. However, Enron is the operator of this $900 million joint venture between Reliance and ONGC. Both ONGC and Reliance have the pre-emption rights by virtue of being partners in the joint ventures operating these companies. But this does not mean that they will get it any cheaper. They will have to match the highest bidder, sources said. It may be recalled here that Enron has recently decided to sell its entire oil and gas assets in India. The buyer for these assets is to be selected through a two-stage bidding process. Credit Suisse First Boston has been appointed as the investment banker to derive current value of its stake in the joint venture. These oil and gas fields in Gujarat and Mumbai offshore are reportedly producing around 300 million cubic metre of gas and 29,000 barrels of oil per day. Copyright , 2001 Indian Express Newspapers (Bombay) Ltd.
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