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Lazard has hired Peter Marquis, formerly v.p. in the global power and utilities group atMorgan Stanley in New York, in a new position as v.p. covering power sector mergers & acquisitions. Marquis says he joined Lazard because the position provides him the opportunity to focus purely on strategic advisory services, whereas at Morgan Stanley he covered a broader menu of financial products.

Scott Putnam, the chief weather quant at Hess Energy Trading Co., is exiting the weather industry and joining a San Francisco-based bio-tech outfit, according to an industry official. Rumors of his impending departure have been circulating in the tight-knit weather market over the last couple of weeks (PFR, 4/8). Repeated calls to Putnam were not returned and HETCO officials declined comment. Putnam was part of the original gang of four from Koch Entergy Trading who kick-started the HETCO weather desk (PFR, 5/9/00). Amit Bhattacharyya, who recently joined the team from Louis Dreyfus, will take on some of Putnam's responsibilities.

Susan Abbott, managing director at Moody's Investors Service, has left the credit rating agency. Abbott, who was most closely identified with the rancorous downgrade of power traders such as Mirant and Calpine late last year, had recently been responsible for developing the agency's methodology in tackling the sector (PFR, 1/14).

Syndication of InterGen's $430 million Magnolia non-recourse loan facility is close to wrapping up. Leads ABN AMRO and Credit Lyonnais have signed up Bank of Ireland and Sumitomo Bank for retail tickets and are waiting on a final commitment that would take the retail round total to $55 million, says one syndicator. The 10-year project loan, which funds construction of a 900 MW gas-fired plant near Memphis, Tenn., has 14 banks already committed following a wholesale round that closed Dec. 9 (PFR, 12/23). The banker says that given the strong line-up in the first round, selling down $55 million at the retail level is in line with initial expectations.

FORTISTAR, a White Plains, N.Y.-based independent power marketer, is looking to close syndication of a $100 million non-recourse facility shortly, but some bankers say the deal has had problems attracting commitments. The facility, led by Bank of Nova Scotia, will fund an acquisition, says Mark Comora, president at FORTISTAR, declining to comment on the target.

TXU has held preliminary acquisition discussions with two fellow southwestern power giants Entergy and OGE Energy, according to a New York banker familiar with the matter. He says talks have been ongoing for a couple of months, but have not progressed far enough for TXU to retain an investment-banking advisor. Tim Hogan, a TXU spokesman, declined to comment, except to say the Dallas-based company intends to reduce its presence in the Lone Star State and expand elsewhere in North America. Morgan Stewart and Brian Alford, spokesmen at Entergy and OGE, respectively, would not comment, citing company policy.

Enron Global Services has decided against unloading its portfolio of assets in Central and South America and is looking to keep them as an integral part of a new entity that will be spun off and operate apart from the bankrupt energy trader. A New York banker familiar with Enron's asset sale U-turn says the assets have been taken off the block because Enron has not been able to find buyers willing to purchase them at acceptably high prices. He was unable to put a price tag on the assets. John Ambler, an Enron spokesman in Houston, confirmed that Enron is developing a plan to separate some of its assets from the bankrupt entity and create a new company. He says that Enron will propose a plan to its creditor committee in May, but declined further comment.

Duquesne Light last Monday wrapped up a $200 million note issue that will fund the early calling of two $100 million issues maturing in 2003 and 2004. With a general consensus in the market that rates are probably at their low point, the regulated transmission and distribution utility decided to lock in rates with first-mortgage bonds due April 15, 2012, says a spokesman at parent DQE in Pittsburgh. The issues being taken out are callable at par with no associated premium.

The Indiana Municipal Power Agency (IMPA) intends to use the proceeds from a $65 million offering of 20-year revenue bonds issued last week to expand and improve the environmental performance of three power plants in Kentucky and Indiana, according to Chris Retig, cfo.

Credit issues are at the forefront of all facets of the power marketing industry, as firms come to terms with the collapse of Enron and the fallout from the California crisis. Credit questions are changing everything from the substance of PPA negotiations to the coverage that players can tap in the credit insurance market, power officials say.