Last Tuesday, Dynegy executives said most of the company's cash flow comes from hard assets, like pipelines and power generation, not trading.
Duke Energy, the power generation and trading company, said yesterday that it planned to buy the Canadian natural gas pipeline and distribution company Westcoast Energy for $3.5 billion.
"If you fix caps at $250, you have to realize that if in a neighboring state someone is offering $251 for power, you will have a serious shortage," said Richard Priory, chairman of Duke Energy, a nationwide power generation and trading company.
Mr. Green and others predicted that the downturn in the energy industry and the stock markets could lead to a significant shakeout, leaving a smaller number of serious contenders in the power generation and trading business.
"This may not be intellectually defensible, but it's politically predictable," said Joe Bob Perkins, executive vice president for wholesale businesses at Reliant Energy, a power generation and trading company in Houston.
Correction: May 2 , 2001 Wednesday A headline on Monday with the continuation of a front-page article about the growth of unregulated power generation and trading businesses like those owned by the PG&E Corporation misstated the company's financial condition.
[C9.] Duke to Buy Canadian Company Duke Energy, a power generation and trading company, said that it planned to buy Westcoast Energy of Canada, a natural gas pipeline and distribution company, for $3.5 billion in cash and stock.
Constellation also announced on Oct. 26 that it has scuttled plans to split off its power generation and trading operations into a separate company.
Tariff has also been expected to become lower because of the competition in power generation and retail trading.
Angry shareholders urged Reliant Energy Chairman and Chief Executive Steve Letbetter to resign, saying the power generation and energy trading company had deteriorated rapidly under his leadership.
Shoreline Group, the conglomerate he founded and controls, has tentacles in oil exploration and production, power generation, construction, commodities trading and telecommunications.
