Williams Cos. Inc., Tulsa, Okla., said it plans to offer $1 billion in publicly traded units, called FELINE PACS, subject to market conditions, part of a previously reported plan to maintain the company's investment grade credit ratings. The debt will have a 5-year term, and the equity purchase contract will require the company to deliver Williams common stock to holders after 3 years at a previously agreed rate. Net proceeds will be used as part of a balance sheet strengthening plan announced Dec. 19 to fund the company's capital program, repay commercial paper, and other short-term debt.
Sierra Pacific Power Co., a unit of Sierra Pacific Resources, reported extending to Jan 22, the expiration date of the exchange offer for its $320 million aggregate principal amount of 8% General and Refunding Mortgage Bonds, Series A, due June 1, 2008. The expiration date for the exchange offer for the bonds, originally issued May 24, 2001, was set for Jan. 21.
UtiliCorp United Inc., Kansas City, Mo., said it received all approvals necessary for the company's previously announced exchange offer under which it plans to acquire all the publicly held common shares of its 80% owned subsidiary, Aquila Inc. The offer is subject to the tender of a majority of the publicly held Aquila shares prior to the Jan. 4 deadline. UtiliCorp said it doesn't plan to change the terms of its offer, which gives Aquila shareholders 0.6896 shares of UtiliCorp common stock for each outstanding share of Aquila common stock.
Dominion Resources Inc., Richmond, Va., said it will take over a $600 million contract from Enron Corp. to supply United Illuminating Co., New Haven, Conn., a unit of UIL Holdings Corp., 100% of UI's power needs for the next 2 years. The two companies reached the agreement after Enron sought bankruptcy protection and UI terminated its contract with Enron for supply of the power.
Equitable Resources Inc., Pittsburgh, Pa., said unusually warm weather in the fourth quarter of 2001 will reduce 2001 earnings by 7¢/share. It said weather in its western Pennsylvania utility service area was 31% warmer than in the fourth quarter of 2000 and 24% warmer than normal. In 2000, Equitable earned $1.72/share for the year. Consistent with previous guidance, Equitable said it expected to earn $2.35-$2.40/share in 2002.
Calpine Corp., San Jose, Calif., said it raised an additional $200 million in a private placement as part of the power generator's efforts to reassure investors about its financial strength. The notes, convertible into Calpine common stock at $18.07/share, carry the same terms as the securities sold in a $1 billion placement last month.
The Connecticut Siting Council approved Westborough, Mass.-based Cross-Sound Cable Co. LLC's application to build and operate a 24-mile high voltage electric transmission cable across Long Island Sound. The cable, capable of transporting up to 330 Mw, is expected to begin operating this summer. Cross-Sound Cable is a subsidiary of TransEnergie US Ltd., the transmission division of Hydro-Quebec, and is also partially owned by TransEnergie HQ Inc., and United Capital Investments Inc., a unit of UIL Holdings Corp.
West Texas Gas Inc., Midland, Tex., purchased the 43-mile Carrizo Springs Pipeline from Southern Union Co., Austin, Tex., Southern Union reported. Terms were not disclosed. The sale follows a string of noncore asset divestitures over the past year by Southern Union, including, most recently, the sale of its Florida operation in December 2001. Proceeds from noncore asset sales are used toward debt reduction, the company said.
The European Commission approved UtiliCorp United Inc.'s and bank Deutsche Australia Ltd.'s plan to buy the UK's Midlands Electricity PLC. Midlands was owned by GPU Inc, the utility company taken over by FirstEnergy Corp. in November last year.
The Idaho Public Utilities Commission staff asked commissioners to consider repealing terms of the electrical buy-back agreement between Idaho Power Co. and Astaris LLC. Under the agreement, Idaho Power is paying Astaris an average $159/Mw-hr for 50 Mw Astaris agreed not to use and sell back to Idaho Power so the utility could meet a generation shortage it faced at the time. Since the March agreement, market prices dropped from a range of $280-$300/Mw-hr to under $50/Mw-hr, the staff said.