Top News

With investment fund takeout, El Paso gains new access to capital

While analysts were somewhat surprised by an investment firm's steep price to acquire Texas investor-owned utility El Paso Electric Co., the deal likely makes financial sense for both parties and may face little resistance from tough state regulators.

Gas utilities staking out their place in climate-conscious energy space

Gas utilities are working to figure out their roles in an increasingly climate-conscious world, especially as more energy regulators and consumers begin to seek out non-fossil fuel sources.

Coal sector to remain stable in near term, Moody's says

The U.S. coal sector should remain stable for the next 12 to 18 months, Moody's said in a June 3 note.

Credit market woes compounding risk in oilfield services sector, analysts say

Despite healthy balance sheets for many across the oil and gas equipment and services sector, a few companies have an elevated risk of defaulting as investors flee the sector, according to analysts.

Quoted

"There's kind of a continual need to keep building new power plants every five or 10 years or so," Jay Rhame, portfolio manager and research analyst at Reaves Asset Management, said on the challenges facing El Paso Electric, which announced June 3 that it agreed to be acquired by Infrastructure Investments Fund.

Power

* Dominion Energy Virginia can keep its controversial and recently energized 500-kV Surry-Skiffes Creek transmission line in place for now, a federal appeals court ruled.

* The Michigan Department of Agriculture and Rural Development announced that it is allowing state farmland to be used for commercial solar array purposes.

* The Tennessee Valley Authority is on track to reduce its power plant carbon emissions by 70% from 2005 levels by 2030 through a combination of coal-fired facility retirements, increased nuclear plant output, and modernizing existing or building new renewable generation, according to a company spokesperson.

* New Hampshire Gov. Chris Sununu, a Republican, has again vetoed a bill that would have raised the net metering cap from 1-MW nameplate capacity to up to 5-MW nameplate capacity for behind-the-meter "customer-generators" eligible for compensation, according to The Associated Press.

* PacifiCorp, which does business as Rocky Mountain Power in Wyoming, is set to start construction of a $3.1 billion wind energy project this week, the Wyoming Public Media reported. The wind projects are a major part of PacifiCorp's Energy Vision 2020 initiative and would generate 1,150 MW of electricity.

* The NFL's Oakland Raiders, which will be moving to Las Vegas when the team's new stadium is complete, are reconsidering their plan to drop NV Energy Inc. as the power provider of their future stadium, The Nevada Independent reported.

* Puna Geothermal Venture filed applications for two new geothermal wells, the Hawaii Tribune-Herald reported.

Natural gas

* The federal pipeline safety regulator, up for congressional review, wants lawmakers to give the agency a clearer role in new-project development, more flexibility in oversight and the go-ahead to regulate key issues that have contributed to major incidents.

* Environmental group WildEarth Guardians filed a lawsuit in the U.S. District Court in New Mexico to overturn the sale of nearly 70,000 public lands for fracking in the Great Carlsbad region of southeast New Mexico.

* The Federal Energy Regulatory Commission granted a pair of extensions for developers of delayed LNG export projects in Louisiana and Texas to complete their terminals.

* Australia's status as a natural gas superpower is at risk over unclear climate policy and exports, the Financial Times reported.

Oil

* Royal Dutch Shell PLC increased its organic free cash flow outlook to around $35 billion for 2025 at $60 per barrel. The company said there is a potential to distribute $125 billion or more to shareholders through dividends and share buybacks over the 2021 to 2025 period.

* The Minnesota Court of Appeals deemed an environmental review for Enbridge Inc.'s Line 3 oil pipeline replacement project "inadequate," reversing the Minnesota Public Utilities Commission's approval of the assessment.

* The Federal Energy Regulatory Commission granted partial approval to the rate structure and terms of service for Plains All American Pipeline LP's Cactus II crude and condensate line, Reuters reported.

* President Donald Trump's plan to place tariffs on all Mexican goods could hurt U.S. refiners and push crude prices higher, ESAI Energy said in a June 3 note.

* Mexico has started construction of its $7.7 billion oil refinery, Bloomberg News reported.

* Russia's Deputy Energy Minister Pavel Sorokin said sellers and buyers of contaminated Russian oil should agree on the compensation, according to Reuters reported.

Coal

* Supporters of coal-fired power plants released a new report making the case that existing power resources can more cheaply generate power than new resources such as wind and solar, contradicting other recent reports suggesting much of the U.S. coal-fired generation fleet is uneconomic.

* U.S. Department of Labor auditors called on Congress to review the Mine Safety and Health Act of 1977 to ensure the federal agency that oversees mine safety has clear authority to take actions to protect miners' lives.

ChartWatch

Generator margins narrowed in the U.S. year over year in May as power and underlying fuel prices trended lower with demand.

New from RRA

* Duke Energy Corp. filed petitions for rehearing or reconsideration by the Public Service Commission of South Carolina of portions of two recently decided rate cases for subsidiaries Duke Energy Carolinas LLC and Duke Energy Progress LLC.

The day ahead

* Early morning futures indicators pointed to a higher opening for the U.S. equity markets. To view more SNL equity market indexes, click here. To view more SNL Energy commodities prices, click here.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

The Daily Dose has an editorial deadline of 7:30 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.