Two states have decided to review the high cost of gas this past winter and the effect the price hike has had on the states' gas utilities.
Florida. While granting requested rate...
second quarter, citing the Midwest power shortages as a direct cause.
"Our portfolio of energy marketing contracts, coupled with the events of the last several weeks, have demonstrated that financial exposures can vary widely and unpredictably over a very short period," said Roger W. Hale, LG&E Energy chairman and CEO. LG&E had entered long-term contracts in 1996 and 1997, expecting prices to drop with deregulation.
Earlier, on July 21, Consolidated Natural Gas Co. said it would sell its trading subsidiary, CNG Energy Services Corp., for $48 million to Sempra Energy Trading. CNG Chairman and CEO George A. Davidson Jr. says the utility now will concentrate on its retail gas business: "We believe that the time, cost and risk involved in further scaling up a wholesale marketing and trading company at this stage of market maturity are too great to justify, given the potential rewards."
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