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Enron Mail |
INDIA: Enron chief says many want Dabhol row to end.
Reuters English News Service, 07/10/01 Transmission Line Delays Hit Scottish Generators Dow Jones Energy Service, 07/10/01 Enron and Anschutz Invest in Tropic Networks; Leading Communications Provider and Investment Company Subscribe to Tropic Networks' Optical Packet Networking Vision Business Wire, 07/10/01 Nigerian gas company signs accord to supply US power firm Agence France-Presse, 07/10/01 Enron pushes for resolution of Dabhol power project deadlock Agence France-Presse, 07/10/01 Judge tells deal critics to continue utility talks The Star-Ledger Newark, NJ, 07/10/01 Tacoma Power wants millions Customer refund: Utility estimates it overpaid electricity generators about $72 million The News Tribune Tacoma, WA, 07/10/01 INDIA: Enron chief says many want Dabhol row to end. 07/10/2001 Reuters English News Service (C) Reuters Limited 2001. NEW DELHI, July 10 (Reuters) - Enron Corp chairman Kenneth Lay said on Tuesday that governments of several countries and some of the world's biggest banks wanted an early end to the row over its troubled Indian unit. "I think it's in everybody's best interest - the government of India, the government of the U.S., the investors, the government of Japan - we have many government financial entities involved in this project," he told reporters. "So you've a lot of interests here who would like to see this resolved and resolved very quickly," Lay said after a meeting with Finance Minister Yashwant Sinha. Lay said Monday's meeting with the finance minister did not yield any solution for the U.S. energy firm's $2.9-billion Dabhol power plant, which is locked in a bitter payments battle with Maharashtra State Electricity Board (MSEB), a state utility. "Obviously we didn't come to any conclusion today. We didn't expect to come to any conclusion today. It will take some more work...but certainly we're very hopeful," he said. Lay met federal Power Minister Suresh Prabhu for nearly two hours on Monday and was to meet the chief minister of the western state of Maharashtra, where Dabhol is located, later on Tuesday. In May, Enron issued a preliminary termination notice after MSEB defaulted on payments, and the utility, Dabhol's sole buyer, stopped taking power from the project. Enron holds a 65-percent stake in the Dabhol Power Co. Its first phase of 740 MW was completed in 1998 while a second phase adding another 1,444 MW was almost complete when its contractor stopped work because of the dispute. Lay said the governments of Oman and Abu Dhabi were involved in contracts for liquefied natural gas for the second phase of the project. The project has been funded with a debt of $2 billion. Of this, offshore lenders have contributed about $600 million and the remaining $1.4 billion by local institutions and banks. Lay said the biggest banks from United States, Europe, Canada and Japan were involved in the project. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Transmission Line Delays Hit Scottish Generators 07/10/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) LONDON -(Dow Jones)- Construction of a long-awaited transmission line that would boost access of Scottish generators to the English market remains on hold because of foot-and-mouth related restrictions, the National Grid Group PLC (NGG) told Dow Jones Newswires Monday. "The North Yorkshire Transmission Line Project, that went on hold with the onset of the foot-and-mouth epidemic late February, remains on hold because construction teams cannot access areas classified as infected," said the National Grid spokesman. The 75-kilometer transmission line between Teeside and the Vale of York would reduce the present bottleneck in northern England, allowing more Scottish-generated electricity through to customers in England. "This is particularly difficult for National Grid because we have an obligation to facilitate competition," said the National Grid spokesman. "This problem reduces the ability of players to compete, plain and simple." The National Grid spokesman could not estimate when construction would resume, but said, "Once we start, it will be at least two to three years before the transmission line will be available for use." The Department for the Environment, Food and Rural Affairs could not comment on when access restrictions would be lifted in the North Yorkshire area, but a spokeswoman said, "We cannot even begin discussion of lifting restrictions on access to infected areas, until four weeks after the last diagnosed case has been killed, and the area cleaned and disinfected." Generators in Scotland are hit hardest by the delay because it interferes with their plans to compete more actively in electricity markets in England and Wales. A spokeswoman for Scottish and Southern Energy said, "We do have to improve access to markets in England and Wales," and added, "While we understand the circumstances, we still look forward to the increased flexibility that the North Yorkshire line will provide." A spokesman for Scottish Power said, "As a Scottish company, we want the Yorkshire line, to further open the U.K. market to competition." The National Grid spokesman said some newly built generation is waiting to come on line pending completion of the line. Companies would not comment on their involvement, citing commercial sensitivity. According to National Grid, a 1,875 megawatt plant at Teeside is subject to operational restrictions until the new transmission line is complete. This plant enhanced the necessity for the new transmission line when it came on line in 1993, because existing lines could not accommodate the total capacity of the Teeside plant. The plant is owned by a consortium, with Enron Europe owning half the shares. Midlands Electricity (19%), Northern Electricity (15%), SWEB (8%), and SWALEC (8%) make up the rest of the consortium. Enron said the Teeside plant isn't subject to any operational restrictions. National Grid first applied for governmental consent for the new 4,840 megavolt amps transmission line in 1991. After two public inquiries, extensive planning, and conflicts with groups opposing the construction, they received consent to begin construction in July of 2000, and began in September of that year. -By Sarah Spikes, Dow Jones Newswires; +44-(0)20-7842-9345; sarah.spikes@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron and Anschutz Invest in Tropic Networks; Leading Communications Provider and Investment Company Subscribe to Tropic Networks' Optical Packet Networking Vision 07/10/2001 Business Wire (Copyright © 2001, Business Wire) ANDOVER, Mass. & OTTAWA, Canada--(BUSINESS WIRE)--July 10, 2001-- Tropic Networks Inc., a ground-breaking company building optical packet network (OPN) systems for carriers who demand a greater ability to cost-effectively scale their metropolitan area networks, today announced that Enron Broadband Services, a subsidiary of Enron Corp. (NYSE: ENE) and Anschutz Investment Company were key investors in Tropic's previously announced $60 million second round of funding. Anschutz Investment Company is the financial arm of the Anschutz Company, which founded and incubated Qwest Communications. "The relationships we have been able to forge with Enron and Anschutz are votes of confidence for Tropic's optical packet networking vision, and enhance our credibility in the wide-open metro market," said Kevin Rankin, president and CEO for Tropic Networks. "The business insight that comes with the involvement of these blue chip investors is invaluable to Tropic's continued success." Tropic's OPN systems bring new levels of dynamic control and scalability to networks by combining data services with intelligent optical transport in a single, carrier class package. The Company's vision of optical packet networking incorporates IP as the dominant services protocol, Ethernet as the preferred data interface and optical wavelengths as the ubiquitous transmission medium. This model enables carriers to enhance their revenue opportunity by extending the life of existing networks and services while adding compelling new IP, Ethernet and wavelength services. Tropic Networks is using the investment to help drive the development of its initial customer relationships and its OPN product line. "Tropic Networks' optical packet networking system has the potential to make a major impact on carriers' metropolitan area networks in terms of performance and scalability," said Scott Carpenter, vice president for Anschutz Investment Company. "Tropic clearly understands the importance of scalability not only at the node level, but also at the network, services and business levels." Tropic's optical packet networking system is the first to address the needs of scalability from the `box to the business'. In addition to providing unmatched levels of intelligence at the node level, this model allows carriers to deliver a wide range of services over a single infrastructure, and manage the balance between capital expenses, operational expenses and revenue. Anschutz and Enron are members of Tropic's investor partner team which includes Crescendo Ventures, Goldman Sachs (NYSE: GS), Altamira, Raza Venture Funds, Celtic House International, Kodiak Venture Partners and the Ontario Teachers' Pension Plan Board, all of whom invested in the $60 million second round. Tropic Networks has raised $67 million US through two rounds of financing. About Tropic Networks Tropic Networks is a privately held company focused on delivering optical packet networking (OPN) systems for carriers who demand a greater ability to cost-effectively scale their metropolitan networks to meet the current and future demands of IP traffic. Its unique solution enables carriers to enhance revenue opportunities by extending the life of existing networks and services, while adding compelling new IP, Ethernet and wavelength services. Tropic Networks revolutionizes the cost, availability and flexibility of the carrier's network by providing unmatched levels of scalability and control, and the ability to dynamically tune the network and business case as service portfolios evolve with customer demands. Based in Ottawa, ON, and Andover, MA, Tropic was formed in May 2000 by an experienced core team of optical and networking engineers and executives. For more information, visit www.tropicnetworks.com. About Anschutz Investment Company The Anschutz Company and its affiliated companies are principally engaged in telecommunications and media, natural resources, transportation, real estate, sports and entertainment. The Company, headquartered in Denver, Colorado since the late 1960s is one of the largest privately owned and operated companies in the United States. For more information, visit www.anschutzinvestments.com. CONTACT: Tropic Networks Sterling Hager Dan Poranski Tom Boucher 978-482-3301 617-926-6665 x220 dporanski@tropicnetworks.com tom@sterlinghager.com 08:00 EDT JULY 10, 2001 Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Nigerian gas company signs accord to supply US power firm 07/10/2001 Agence France-Presse (Copyright 2001) LAGOS, July 10 (AFP) - The Nigerian gas firm NLNG said Monday it had signed an accord to supply gas to the US power company Enron from 2005, when two new NLNG units come on stream. Nigerian Liquefied Natural Gas (NLNG) will deliver one billion cubic meters of gas per year to Enron, the group said in a statement. NLNG Managing Director, Andrew Jamieson, said the agreement "represents confidence in the capability of the NLNG as a reliable supplier." The NLNG is a Nigerian joint venture company whose shareholders are the Nigerian National Petroleum Corporation with 49 percent, Shell with 25.6 percent, TotalFinaElf with 15 percent, and Agip 10.4 percent. ade/pcj/da Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron pushes for resolution of Dabhol power project deadlock 07/10/2001 Agence France-Presse (Copyright 2001) NEW DELHI, July 10 (AFP) - The chairman of US energy giant Enron Corp. Kenneth Lay met Indian government officials Tuesday to push for a resolution of its dispute over a stalled power project near Bombay. The Enron-backed Dabhol Power Co's 2,184 megawatt power plant stopped generating electricity in May when its sole client, the Maharashtra State Electricity Board (MSEB) failed to clear its long- overdue power bills. After the payement defaults, MSEB also refused to buy any more power following a dispute over tariffs. Lay flew in from Enron's US headquarters for a meeting with Indian Finance Minister Yashwant Sinha in New Delhi to try and break the deadlock over the power purchase agreement. "It is in the government and the country's interest to revive the project," Lay told reporters after meeting Sinha. Lay said he was optimistic about finding "an amicable solution" to the problem in due course. "We did not come to any conclusion and we did not expect to come to any conclusion. More work is required by us and the government to review the project," Lay was quoted as saying by the Press Trust of India (PTI). The first part of the power station began generating electricity in May 1999 while the second part is close to completion. The 2.9- billion dollar Dabhol project comprises the single largest US investment in India. PTI said Lay also had a two-hour long meeting with Power Minister Suresh Prabhu. Indian state-owned financial institutions have lent 1.4 billion dollars to the Dabhol project, while foreign lenders have an exposure of 600 million dollars. Loans by foreign lenders are guaranteed by the federal government, but the Indian lenders do not have the same cover. Foreign lenders in May this year authorised the power company to issue a preliminary termination notice to MSEB after payment defaults. It issued the notice in June, setting the clock ticking on a six month deadline for the electricity supply contract to be cancelled. MSEB has also said it does not want power from the second phase of the project, introducing another element to the dispute. The Indian government has been trying to pursue other states to buy power from the project, but have found it a difficult proposition. uc/gh/am Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Business Judge tells deal critics to continue utility talks JOSEPH R. PERONE STAR-LEDGER STAFF 07/10/2001 The Star-Ledger Newark, NJ FINAL 026 © 2001. The Star-Ledger. All rights reserved. An administrative law judge ruled yesterday that critics of the GPU Inc.-FirstEnergy Corp. merger should continue talking with the utilities for two more weeks to reach a settlement that will allow the transaction to go forward. Administrative Law Judge Louis McAfoos 3d gave the parties until July 20 to hammer out their differences over FirstEnergy's proposed $4.5 billion purchase of GPU. The settlement talks involve the state Ratepayer Advocate's Office, GPU suppliers Enron and Shell and the state Board of Public Utilities, as well as the two power companies. GPU, based in Morristown, is the second-biggest utility in the state, with 1 million customers. The BPU's staff is concerned the joining of GPU and the Ohio utility will lead to large rate hikes for consumers when electric rate caps come off in 2003. Consumer advocates worry GPU might pull out of its Morristown headquarters and service levels would drop after the merger. "We'd like to see the headquarters stay in Morristown," Ratepayer Advocate Blossom Peretz said. "I don't want to have to call Ohio when I have a complaint." GPU, which declined to comment, has 2,100 employees in New Jersey from Hunterdon to Monmouth counties. Peretz also wants to ensure GPU shares savings with consumers and treats low-income customers fairly because they sometimes end up paying a disproportionate share of their income - as much as 25 percent - for energy bills. FirstEnergy, she said, also might force GPU to leave the PJM power grid that serves the Mid-Atlantic states, including New Jersey. FirstEnergy is part of the Alliance, a group of utilities that have formed a power grid to buy and sell electricity in the Midwest. GPU has said during previous testimony it has no plans to leave the PJM grid. Peretz also doesn't want consumers to end up paying any penalties resulting from a clean-air lawsuit filed by the federal government against FirstEnergy's coal-burning plants in Ohio. "We don't want New Jersey ratepayers to be responsible for the cleanup," she said. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Front Page Tacoma Power wants millions Customer refund: Utility estimates it overpaid electricity generators about $72 million Les Blumenthal The News Tribune 07/10/2001 The News Tribune Tacoma, WA South Sound A1 (Copyright 2001) Tacoma Power estimates West Coast power generators and marketers owe it $72 million in refunds for power bought on the open market between October 2000 and May, when wholesale prices surged more than 10 times over previous levels. The estimates, filed in affidavits with Federal Energy Regulatory Commission Judge Curtis Wagner Jr., are the first from the utilities since electricity prices began their sharp run-up last summer. Wagner said Monday he would recommend negotiations continue over an effort by Northwest utilities to recover what they now estimate was more than $680 million in alleged overcharges to the region's electricity ratepayers. Other estimates included Seattle City Light, $222 million, and Snohomish Public Utility District, $229 million. The Bonneville Power Administration estimated it should receive up to $140 million in refunds from purchases it had to make as a result of the second worst drought in the region's history. But Bonneville also sold electricity at various times in the California market. And while some utilities in California believe Bonneville owes them money, BPA said in its affidavit it has "no liability" for refunds. Wagner has spent the past 15 days trying to negotiate a settlement both for Northwest utilities and California, where the state has estimated consumers are owed $8.9 billion. The Federal Energy Regulatory Commission had given Wagner and those involved in the negotiations until Monday to reach an agreement. With the unsuccessful end to those talks, Wagner now has a week to make a recommendation to the commission, which would then decide on the refunds. But Wagner, in outlining what his recommendation might include, indicated he wasn't convinced the Northwest had been treated fairly in the negotiations because so much of the focus was on California. "With regard to the Northwest, I may very well recommend further negotiations with a settlement judge because they have not really had their day in court," he said. Philip Chabot, a Washington, D.C., lawyer who represented Tacoma Power in the negotiations, said he thought the judge's suggestion for additional negotiations was a good one. "California is the 500-pound gorilla, they drive the market and they have driven the negotiations," Chabot said. "Obviously, we weren't successful in getting a settlement. But we moved the process forward. It would be all to the good if we got negotiations focusing on the Northwest." Simon ffitch, a Washington assistant attorney general who represented the state in the talks, said he too thought Wagner's interest in additional Northwest talks was a positive development. "We support that," ffitch said. "I am disappointed we couldn't reach a broader agreement, but we gave it a good try. We are at the beginning of the process." The attorneys general of Washington, Oregon and California are investigating whether they have grounds for an antitrust or criminal case against West Coast power generators and marketers. Regardless of the talks, ffitch said that investigation would continue. But Sen. Maria Cantwell (D-Edmonds) said she wasn't convinced negotiations for the Northwest should follow a separate track because the Californians were providing much of the pressure for a settlement. "If at some point we have to peel off, fine. But maybe we should stick with California," said Cantwell, who had pushed federal regulators into allowing the Northwest into the talks in the first place, then had to convince skeptical utilities in the state to send representatives. Cantwell said she wasn't surprised at the estimates Tacoma, Seattle and Snohomish submitted in their affidavits to the judge. All three utilities have had to raise their retail rates by up to 50 percent. Of the power generators and marketers Tacoma said had overcharged, many were actually Northwest-based, including Avista Energy of Spokane, PPL Montana, the Chelan County Public Utility District, Grant County Public Utility District, Idaho Power and Puget Sound Energy. But others included some of the nation's major energy suppliers, including TransAlta and Enron. In determining the refunds, Tacoma and the other utilities calculated that any electricity bought above $150 per megawatt was subject to a refund. By comparison, prior to the current West Coast energy crisis, utilities paid between $30 and $40 a megawatt. At the height of the crisis, electricity cost more than $300 per megawatt. - - - * Les Blumenthal covers matters of interest to Washington state and the Northwest in Washington, D.C. His e-mail address is blumenthal@mcclatchydc.com. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
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