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NRG Energy is considering dividing its 1.1 GW portfolio of mainland European generation assets into two blocks of German and non-German assets in order to entice Germany's two deep-pocketed utility giants E.on and RWE into the auction, say London bankers. They add the tactical change--being pushed by its advisor Goldman Sachs--represents a U-turn for the IPP. Originally it was looking to sell its international businesses in four distinct units of Latin American, Asian-Pacific, U.K. and mainland European assets (PFR, 3/18).

Morgan Stanley has appointedCharlie Rankin as head of European power trading following the recent departure ofAndy McMillan to U.S. hedge fund Tudor Investments (PFR, 5/27). Rankin says he has been promoted from deputy head of the power desk. Rankin, a seasoned oil derivative trader, was previously McMillan's boss when both traded the oil market for the bulge bracket firm.

Annual flows in the global weather derivatives market topped out at $4.3 billion, a 72% increase over last year. The annual industry survey by the Weather Risk Management Association, which covers April 1, 2001 through last March 31, also shows that while North American captured the lion's share of activity, Europe grew the most on a percentage basis. It witnessed 765 contracts with a notional value of $601 million, representing a 345% increase in terms of number of contracts and 1,126% in terms of notional value.

Moody's Investors Service is being criticized for discounting the need for models in the valuation of power contract portfolios in its latest position paper on the energy merchant sector. Mark Williams, risk management expert at Boston University and former head of risk management at Edison Mission Energy says, "The premise that the model in and of itself is bad is flawed. They're not," he says.

Danish green energy generator ENERGI E2 has agreed to buy Cinergy Global Power's portfolio of Spanish renewable energy facilities and projects. A banker involved in the deal declined to reveal the price of the sale, but says ENERGI will take over ownership of 93 MW of predominantly wind-driven facilities, as well as a handful of hydro and biomass assets. It also lands concessions to operate a further 200 MW of installed capacity in Spain and some 300 MW of wind farm development projects that could come on line within the next two to three years.

Danish green energy generator ENERGI E2 has agreed to buy Cinergy Global Power's portfolio of Spanish renewable energy facilities and projects. A banker involved in the deal declined to reveal the sale price, but says ENERGI will take over ownership of 93 MW of predominantly wind-powered facilities, as well as a handful of hydroelectric and biomass assets. It also lands concessions to operate a further 200 MW of installed capacity in Spain and some 300 MW of wind farm development projects that could come on line within the next two to three years.

American Electric Power has told federal regulators it didn't engage in so-called "round-trip" trades. The Columbus, Ohio-based power company's formal reply to an investigation of power trading confirmed earlier statements that it had not engaged in questionable trades. "Our focus is profitability, not volume," said E. Linn Draper Jr., chairman and ceo (The News-Sentinel, 6/3).

Natural gas pipeline and energy trading company El Paso says Charles Dana Rice, senior v.p. and treasurer, died last Sunday in an apparent suicide. "I can confirm that he passed away yesterday and it is our understanding that it was a suicide," said spokeswoman Norma Dunn (Reuters, 6/3).

The U.S. Supreme Court has rejected an appeal by California Gov. Gray Davis of a ruling that he lacked the authority to seize energy contracts during the state's electricity crisis. Without any comment, the justices declined to review a U.S. appeals court ruling that the action by Davis in early 2001 was in conflict with the Federal Power Act (Reuters, 6/3).

Embattled energy company El Paso axed its Houston-based mezzanine funding group May 29 and let go all seven of its remaining staff. The group, formed two years ago and named EP Power Finance, had a portfolio of six deals with a total value in excess of $100 million, according to a market official. The business was profitable but El Paso was no longer willing to provide the capital to support it, he says. "All energy companies are retreating to the core," he notes, adding that the move is in response to tumbling share prices, lowered credit ratings and an erosion of investor confidence across the sector. Calls to El Paso's press office in Houston were not returned by press time.