Electricity
NRG Energy to sell another power plant
Minnesota-based NRG Energy has agreed the sale of its 1,160 megawatt (MW) generating plant in Minooka, Illinois to an affiliate of asset acquisition company LS Power. NRG has the right to buy back a 40% interest in the project within a 10-year period,…
Energy users to join Italian power exchange by 2005
Energy consumers are now expected to start trading on the Italian wholesale power exchange by the start of 2005, said Paolo Ghislandi, secretary-general of Aiget, the Milan-based Italian association of energy traders and suppliers.
Shaping the curve
A shaped forward curve is important for both trading and risk management. Here, Giorgio Cabibbo and Stefano Fiorenzani provide a model for shaping electricityforward curves that is consistent with both financial theory and market practice.Here, they…
Texan retail therapy
Certain large Texas electricity suppliers want to reduce debt following significantlosses. So their retail divisions are trying harder than ever to squeeze moreprofits from a fiercely competitive retail market. JoeMarsh reports
Good neighbours
Spanish and Portuguese energy market participants are hopeful that a joint Spanish-Portuguesepower market is imminent. But how competitive will the Portuguese side of themarket be? Joe Marsh reports
Iberdrola’s inroads
Spanish utility Iberdrola supplied almost a third of its home country’selectricity in 2003. And with a joint Iberian energy market scheduled to startin March, the firm has plans for further expansion into Portugal. By Joe Marsh
A history lesson
Abstract: The size of bid/ask spreads in electricity options has both valuationand credit implications. Here, Ted Kury of The Energy Authority shows how toderive theoretical spreads using historical option price data so they can beused as liquidity…
A fresh landscape
Prebon Energy’s Kevin McDermott says that much has changed in the electricitybroking world post-Enron. And it’s all for the better. By Paul Lyon
Teething troubles
Following decades of cloistered state control and the exit of a number of largeUS players, the Australian power market is going through a period of hiccups. Paul Lyon reports on the outlook for the country’s electricity sector
Covering all the bases
Abstract: Many articles have discussed constructing models for either spot orforward prices. Yet none cover the whole process of constructing a joint modelfor both. Here, Andreas Huber and MonikaKrca develop a multi-factor model thatcaptures both the…
Constant reminders
Enron has received court approval to emerge from one of the most expensive bankruptciesin history. But pending litigations and trials mean that the Enron spectre willstill loom large. By Paul Lyon
Dominion agrees price for USGen assets
Virginia-based energy producer Dominion looks set to acquire three power plants from Maryland-based USGen New England for $656 million. However, an auction process is due to take place before the deal closes to ensure no other bidders are willing to top…
Cinergy to provide KGen with energy management services
Ohio-based energy company Cinergy yesterday said its marketing and trading affiliates will provide energy management services for power plants owned by KGen Power. Cinergy made the three-year agreement agreement with Kgen, a subsidiary of investment firm…
CMS Energy names new chief executive
Michigan-based power and natural gas utility CMS Energy yesterday promoted chief operating officer David Joos to chief executive.
IPE relaunches UK power futures, while LCH clears first OTC UK power trade
The International Petroleum Exchange (IPE), the London-based energy futures and options exchange, will relaunch UK baseload and peakload electricity futures contracts on September 14. Meanwhile, London-based clearing house LCH Clearnet yesterday cleared…
Iberdrola moves to spread its influence in Europe
Spanish utility Iberdrola is taking steps to expand its trading and supply activities in Europe, particularly in Portugal, given that the joint Iberian power market is scheduled to open in March 2005.
EnergyCurves to market North American energy data
Four energy brokers have formed a Houston-based company called EnergyCurves to provide North American power and gas data services to the energy markets. The initial EnergyCurves products will be forward price curves for the North American gas and power…
Alliant to sell utility businesses
Wisconsin-based Alliant Energy Corp says it intends to sell its two utility businesses in Illinois because of the challenge of operating them in a cost-effective manner.
Former Enron executive pleads guilty
John Forney, a former Enron executive, yesterday pleaded guilty toone count of conspiracy to commit wire fraud for the purpose of manipulatingCalifornia's electricity market during the 2000-2001 Westernenergy crisis, the US Attorney's Office for the…
Looking to the east
Can power market operators in the new EU member states in eastern Europe gainthe liquidity they need to challenge either bilateral electricity contracts orthe established exchanges? Joe Marsh reports
Vertical take-off
As UK supplier Centrica narrows its focus to fund an asset acquisition spree, James Ockenden finds the ‘asset-light’ utility model has finallybeen buried and a move towards ‘vertical integration’ is now thestrategy of choice
Edison Mission sells off foreign power assets, posts Q2 loss
California-based Edison Mission Energy is to sell its remaining foreign generation assets to London-based generator International Power and Japanese trader Mitsui & Co for $2.3 billion. International Power will take a 70% stake and Mitsui a 30% stake of…
TXU sells Australian unit to Singapore Power, posts results
Energy company Singapore Power finalised the purchase of TXU Australia, part of Texas-based TXU Corp, on July 30 for $3.6 billion. TXU Corp’s 2004 second-quarter results reveal it has posted a $600 million loss, compared with $105 million net income in…