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Duke Energy International (DEI) last Wednesday pulled the plug on the bulk of its mainland European energy trading and marketing operations in a move designed to cut overhead and preserve cash. The London-based energy merchant has decided to exit the Italian, German and Nordpool markets and will instead focus its trading efforts on the U.K. and French markets.

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Fortis Capital is due to hold a bank meeting tomorrow to launch syndication of a $120 million non-recourse facility for American Electric Power's Desert Sky wind facility near Stockton, Texas. With thin project finance flows in the wider generation sector, the deal is generating what some think is a disproportionate amount of interest, says one banker. However, he adds it is the first U.S. wind deal for some time and a number of banks will look to take part because they want to be known as wind players when more renewable deals eventually materialize. "A lot of banks say they are wind experts, but who has actually done any U.S. deals?" questions the banker. Calls to Fortis were not returned by press time.

PartnerRe, a Bermuda-headquartered reinsurer, has hired three Aquila staffers to build a weather trading operation. The outline plan is for the team to leverage off the firm's strong balance sheet to build end-user business, says a spokeswoman. She adds there will be no speculative position taking.

Deutsche Bank is looking to sell-off some of its power project finance portfolio and has been talking to a number of other lenders about buying some of its Latin American and Mexican project debt in particular.

PECO Energy, a subsidiary of Chicago-based electric utility holding company Exelon, tapped the bond market last week with $225 million of 10-year first-mortgage notes to refund three series of maturing bonds. The new deal pays 4.75% and was priced at 99.244 to yield 4.85%, according to spokeswoman Linda Marsicano. The debt being refunded is a $175 million issue of 7.1250% notes, $5.28 million of 7.5% bonds and a $41.64 million offering of 8% bonds. All three series were issued in 1992 and fell due this year.

Enel's third and perhaps final auction of Italian power plants next month is unlikely to garner the rich returns of the previous two auctions because of the lack of bidders and a shift in market sentiment away from expanding at breakneck pace, predict market watchers.

TheSouth Carolina Public Service Authority (Santee Cooper) is considering entering its first interest-rate swap to turn part of a recent $440 million fixed-rate electric revenue bond offering into a synthetic floating-rate note.

Tudor Investment, the New York-based hedge fund manager, reportedly has begun trading the European energy markets. London traders say the company recently began trading electricity options in the Scandinavian market. It makes sense for Tudor to enter this market first as it's liquid and the contracts are financially settled, notes one power trader.

Duke Energy International (DEI) today pulled the plug on the bulk of its mainland European energy trading and marketing operations in a move designed to cut overhead and preserve cash. The London-based energy merchant has decided to exit the Italian, German and Nordpool markets and will instead focus its trading efforts on the U.K. and French markets.