In This Report


July 12, 2011
Underwriting & Financial Restructuring
FirstEnergy and its subsidiaries lined up aggregate credit commitments of $4.5 billion. Hydro-Quebec issued a billion-dollar bond issue at 2% interest. NiSource sold $400 million in 30-year notes at 5.95% interest. Central Vermont Public Service, Calpine, Black Hills Corp. and oil and gas companies participated in the capital markets.

Mergers & Acquisitions
Central Vermont Public Service is being sought by two major Canadian utilities: Gaz Métro, which also owns the other investor-owned utility in Vermont, made an unsolicited bid for the company. This put on hold an agreement for Fortis Inc. to acquire Central Vermont PS. Arch Coal and International Coal Group completed their merger, just two weeks after Alpha Natural Resources closed on its acquisition of Massey Energy. Energy Transfer Equity outbid the Williams Cos. for Southern Union Co.

Stocks and Commodities
The Rudden Composite Index gained 0.96% for June, with all categories showing gains. Master Limited Partnerships gained 2.8%, the strongest performance. The Merchant Electric group was the second best, gaining 1.6%. The S&P 500 Index gained 0.46% for June. The Rudden Index gained 21.5% for the 52 weeks ended June 30, compared to the gain in the S&P 500 of 28.1%. All categories gained for the 52 weeks; Natural Gas T&D-Diversified had the strongest gain, up 31.2%. Regulated Transmission & Distribution-Gas and Electric, was up 25.6%. The Dow Jones Industrial Average ended June at 12,414.34, up 27% or 2,640.32 points compared to the end of June 2010. The DJIA lost 1.2% or 155.45 points for the month from 12,569.79 at the end of May. Gold spot month futures prices showed volatility on the New York Mercantile Exchange, with prices dropping $52.40 over two days, June 23 and 24, but also showing gains of $8 or $10 on other days. At month’s end, spot gold settled at $1,502.30, down by $40.10 per ounce from June 1. Silver opened June at $37.689/oz. for the spot month contract and ended the month at $34.812/oz. Light sweet crude oil ended June at $95.42/bbl. for the spot month futures contract; the natural gas spot month futures contract was $4.37/mmBtu; Central Appalachian coal was $77.63/ton.

Samuel Glasser Maggie Arecco-Stanco 631-348-4090 William Kemp, Vice President
Address correspondence to

.Values 06/30/11 S&P Composite Index Master Limited Partnerships (MLPs) Natural Gas T&D (Diversified) Regulated T&D (Gas & Electric) Electric (Merchant) Regulated Electric (Integrated) Electric (Diversified) 1.S. Metropolitan Edison Co.5% 17.34 137.5 billion.8%) (9.65 Change from AllTime High (15.46% 0. Series JO.5 Billion FirstEnergy Corp.S. Pennsylvania Power Co.06 114.06 124.1%) (2. 2041. Black & Veatch Corporation 2 . The debentures are dated June 30...94 158.46 113..2% 52 Week High Change All-Time from 52 High Since Week High 01/03/07 (3.05 112. 2011. the company reported in an 8K Report filed with the U. Jersey Central Power & Light Co.4%) (4.4%) (1.3%) 1. Rudden’s Energy Capital Markets Report Published by Black & Veatch Management Consulting. acting as administrative agent. American Transmission Systems Inc. dollar global issue and its first issue in U.1%) (52.29 85.79 Underwriting & Financial Restructuring FE FirstEnergy Corp.03% 0.94 84. to each corporate unit – FirstEnergy.. and its affiliates dated as of February 4.89% bonds.8% 16.S.46 114.81% Annual Change from 06/30/10 28. It is Hydro-Québec’s second U. and subsidiaries entered into two new five-year syndicated revolving credit facilities with aggregate commitments of $4..8%) (10. European and Asian markets by an international group of underwriters.2%) 1. Canadian.61 98.94 76.7%) (4..95 126. and Subsidiaries Have Credit Commitments of $4.8%) (1.3%) (2. due June 15. the company said on June 23. Series WW.61% 0. The bonds have been issued as contemplated under the bond purchase agreement among the company and Metropolitan Life Insurance Co.1% 21.53 74. and Allegheny Energy Supply Co. 2011. is the administrative agent for the group of 27 banks. Cleveland Electric Illuminating Co.07% 0.58 106.5 billion is available to FirstEnergy Solutions Corp. CV Vermont Utility Issues Bonds Under 6% Central Vermont Public Service Corp.8% 31.66 130. The credit facility is dated June 17. 2016.2%) (2.320. The debentures are guaranteed by Québec and will bear interest at 2%.363. The Royal Bank of Scotland plc..3%) (33. Ohio Edison Co.44 137.2%) (0.565. Pennsylvania Electric Co.6% 7. The debentures will be distributed simultaneously on the American.42 114. and West Penn Power.6%) (15.76% 1.64 Monthly Change from 06/01/11 0. Commitments under each of the new facilities will be available until June 17. unless the lenders agree to up to two additional one-year extensions. LLC with JPMorgan Chase Bank. maturing on June 30. An additional $2..96% 2. Monongahela Power Co.2%) (2.61 98.2% 25. (NYSE: CV) on June 15 issued $40 million in aggregate principal amount of its first mortgage 5. Hydro-Québec Launches Billion-Dollar Bond Issue at Very Favorable Interest Hydro-Québec negotiated a new bond issue of US$1 billion. Potomac Edison Co. Securities and Exchange Commission on June 22.74% 1.64 97. An aggregate amount of $2 billion is available.6% 13. with separate borrowing limits. Toledo Edison Co.81 95. 2016.15 115. currency since 2001.

5 Million Power Plant Financing For New Generation in San Francisco Bay Area Calpine Corp. The loan facility is non-recourse to Calpine and GE Energy Financial Services. The Metcalf Energy Center in San Jose. GE Complete $844.P.. was the nation's first to receive a federal air permit that includes a voluntary limit on greenhouse gas emissions. ING Capital LLC. has 1. Calpine said. Calif. unsecured. on June 24 announced the closing of a $150 million. has completed the sale in an underwritten public offering of $400 million aggregate principal amount of 5. ACB.S. commenced commercial operations in June 2003. the companies said. (NYSE: CPN) announced on June 17 that it closed on a $360 million first lien senior secured term loan.. the companies said June 27. NiSource says it will fully and unconditionally guarantee NiSource Finance's obligations. emissions-intensive plants shut down and in supporting the integration of renewable energy projects into California's power grid. Calif. Tony Cleberg. BKH Black Hills Corp. due 2041. NiSource Finance Corp. The project finance facility includes a construction loan that will convert to a 10-year term loan when commercial operations begin. CPN Calpine Closes on a Senior Secured Term Loan Refinancing Project Debt For Two Plants at Attractive Rates Calpine Corp. Texas. This loan captures the benefits of low short-term interest rates now extant in the marketplace and reduces overall short-term borrowing costs. Pacific Gas and Electric has agreed to purchase the full output of electricity from Russell City upon completion and will supply natural gas fuel to the plant under a 10-year power purchase agreement approved by the California Public Utilities Commission in September 2010. Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. and Metcalf Energy Center.’s (NYSE: GE) GE Energy Financial Services unit obtained an $844.4 million belonging to its subsidiaries Deer Park Energy Center. Closes $150 Million One Year Term Loan Black Hills Corp. one-year. CPN Calpine. The Deer Park Energy Center in Deer Park.25%. The refinanced project debt pertains to two of Calpine’s natural gas-fired. The loan amortizes at a rate of 1% per year and bears interest at LIBOR plus 3.25%. Bank. NiSource Finance intends to use the net proceeds from the sale of the notes to repay short-term bank borrowings under its revolving credit facility. combined cycle power plants. Scotia Bank and U. and matures in 2018. LLC. A Calpine affiliate owns 75% of Russell City and a GE Energy Financial Services affiliate owns 25%. (NYSE: BKH). Calpine utilized the proceeds of the term loan to retire credit agreements totaling $340. (NYSE:CPN) and General Electric Co. Black Hills said. subject to a LIBOR floor of 1. The construction loan and term loan facility will initially be priced at LIBOR plus 2. LLC.001 megawatts of electricity capacity and supplies steam to Shell Chemical L. began commercial operations in June 2005 and can deliver up to 605 megawatts of energy.5 million credit facility to finance construction of the 619 megawatt. singledraw. now under construction. The facility is expected to play a critical role in meeting the Bay Area's power needs as older. combined cycle Russell City Energy Center in Hayward. The cost of borrowing under the loan is based on a spread of 125 basis points over LIBOR.95% notes.25% per annum. Black Hills executive vice president and chief financial officer said. Lloyds Bank Corporate Markets. BMO Capital Markets and CoBank. (NYSE: NI) said on June 10 that its finance subsidiary.NI NiSource Issues $400 Million of 30-Year Notes NiSource Inc. expected in mid-2013. term loan with CoBank.. It was jointly arranged by MUFG Power & Utilities Group. Black & Veatch Corporation 3 . The power plant.

Bank of America. Gaz Métro Limited Partnership. Central Vermont PS said in a press release that its board had determined that “the Gaz Métro proposal is reasonably likely to lead to a superior proposal. Control of Both Vermont IOUs Is at Stake At the end of May. South Dakota and Wyoming. The Central Vermont PS board of directors said on June 27 that it had authorized discussions with Gaz Métro regarding the proposal. oil and coal. the largest investor-owned utility in Canada. Montana. and Royal Bank of Scotland plc as co-syndication agents.0% convertible perpetual preferred stock. the largest utility in the state. The syndicate is led by Wells Fargo.A. having made that acquisition in 2007 through its subsidiary.25 per share in cash.A. the initial commitments totaled $675 million.2 billion. Eagle Rock restructured certain commodity hedges to remove as counterparties two institutions not continuing as lenders under the credit facility.000 additional shares of convertible perpetual preferred stock to cover over-allotments. replaces Eagle Rock's former senior secured credit facility.. the companies said. Mediterranean Sea and the North Sea.Black Hills intends to use the term loan proceeds to reduce borrowings under its revolving credit facility. N. The exercise of the over-allotment expanded the transaction from 1. The partnership is engaged in gathering and transporting natural gas. as administrative agent. with the ability to increase commitments up to $1. and market energy. Mergers & Acquisitions CV/FTS Regulated Vermont Utility Is in Play.5 Million Public Offering of 8. which matures in June 2016. S. fractionating and transporting natural gas liquids. condensate and natural gas liquids. Northern New England Energy Corp. the main gas utility in Quebec.P. and marketing natural gas. Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. (NASDAQ: EROC) of Houston entered into a five-year senior secured credit facility with a syndicate of banks. The company’s non-regulated businesses generate wholesale electricity. and Fortis Inc. utility for $35. Green Mountain Power Corp. ATP Oil & Gas is engaged in the development and production of oil and natural gas in the offshore Gulf of Mexico.000 natural gas and electric utility customers in Colorado. the underwriters exercised their option to purchase 225. EROC Eagle Rock Announces $675 Million Credit Facility and Update to Hedge Portfolio Eagle Rock Energy Partners. (NASDAQ: ATPG) of Houston announced on June 20 that it has increased and closed its previously announced public offering of Series B 8. Iowa. It serves 762. which was scheduled to mature in December 2012. Prior to this placement closing and pursuant to the underwriting agreement. Then. The facility.000 customers. Kansas. Nebraska. L.S.725 million shares. In conjunction with the credit facility refinancing. Gaz Métro already owns the other investor owned utility in the state. struck an agreement that would have Fortis acquire the U. It also restructured certain interest rate hedges to rebalance its fixed versus floating interest rate exposure following the issuance of the fixed-rate senior notes in May. N. It is through the U. and BNP Paribas as documentation agent. The company announced the new credit facility on June 22. made an unsolicited proposal to acquire all of Central Vermont’s outstanding common shares for $35. produce natural gas. The deal included Fortis taking on Central Vermont’s $230 million in debt. and oil and gas exploration and production. on June 23.D.0% Convertible Perpetual Preferred Stock ATP Oil & Gas Corp.” The transaction would create the largest electricity distributor in Vermont serving nearly 250.10 per share. (TSX: FTS). Black Hills is based in Rapid City. subsidiary that Gaz Métro also made its solicitation for Central Vermont PS. Central Vermont Public Service (NYSE: CV).5 million shares to 1. Black & Veatch Corporation 4 .S. ATPG ATP Expands and Closes $172.

Arch acquired approximately 92% of ICG's outstanding shares of common stock in connection with its previously disclosed tender offer. completed its acquisition of International Coal Group. the companies announced on June 16. East Coast.Central Vermont said if it terminates the agreement with Fortis. SUG shareholders can elect to exchange their common shares for $40 in cash or 0. 2 position among U. Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. Prior to the merger. Inc. metallurgical coal producer and a top 10 global met coal supplier. ETE/SUG/WMB Energy Transfer Equity Outbids Williams to Acquire Southern Union Co Energy Transfer Equity.000 customers in Vermont. LP (NYSE:ETE) saw the Williams Cos’ $39 per share offer for Southern Union Co. The company has dedicated throughput capacity. approved by both boards. Energy Transfer and Southern Union announced on July 5 that they entered into an amended and restated merger agreement under which ETE will acquire SUG for $8. Fortis is the largest investor-owned distribution utility in Canada. Elections in excess of either the cash or common unit limits will be subject to proration. Energy Transfer made a bid to acquire Southern Union for the equivalent of $33 per share. including expenses. It was the second major coal acquisition during June.1 billion in cash and ETE common units.S. 2011. the company announced. The revised purchase price represents a significant increase in value being paid to SUG shareholders and more than a 42% premium to the closing price of SUG common stock on June 15. Inc. Comes Right after Alpha-Massey Arch Coal. coal supply basin. and then raised it to $40. The acquisition extends Arch's reach into every major U. St.9 billion. ACI Arch-ICG Merger Completed.S.S. including $5. (NYSE: ICO) on June 15.000 customers in Quebec and 138. it would be required to pay Fortis a total of approximately $19. Leer. The maximum cash component is 60% of the aggregate consideration and the common unit component can fluctuate between 40% and 50%. Arch becomes the second largest U. serving more than 2 million gas and electricity customers.4 billion.5 million. It also owns hotels and commercial real estate in Canada. apparently winning the short-lived bidding war for the natural gas pipeline operator. Black & Veatch Corporation 5 . said Steven F. Louis. Under the terms of the revised agreement. with ICG becoming a subsidiary of Arch. but the Williams Cos. (NYSE: WMB) jumped in a week later with a proposal to acquire Southern Union for $39 per share in cash. With expected pro forma metallurgical sales of 11 million tons in 2011.903 ETE common units. Its regulated holdings include electric utilities in five Canadian provinces and two Caribbean countries and a natural gas utility in British Columbia. Fortis owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. coal supply basins. (NYSE: ACI). Arch chairman and chief executive officer. West Coast and Gulf of Mexico to further penetrate global growth markets. Upon integration. The acquisition also adds nearly 13 million tons of low-cost Appalachian thermal production to Arch's domestic thermal coal portfolio. solidifying the company's No. The aggregate value of the transaction totaled $3.-based coal mining companies. logistics capabilities and strategic relationships that can be used to expand export shipments via the U. the last trading day prior to the announcement of the original merger agreement.S. Alpha Natural Resources completed its acquisition of Massey on June 1. Arch will operate 24 mining complexes across five U. Gaz Métro is Quebec's leading regulated natural gas distributor with 182.S.

P. Atlantic Power will emerge as a publicly traded. engaged primarily in the transportation.The Southern Union board had originally entered into a definitive merger agreement with Energy Transfer Equity. processing and distribution of natural gas. Creates a Contracted Power Generation Platform Atlantic Power Corp. Energy Transfer Equity is a publicly traded partnership which owns the general partner and 100% of the incentive distribution rights of Energy Transfer partners and Regency Energy Partners.. Capital Power’s portfolio includes 19 wholly-owned power generation assets located in Canada and the United States and a 50.P. and three storage facilities located in Texas. (TSX: CPA.P. and a 6. L.40 per limited partnership unit. Most of the company's interstate gas pipeline and midstream assets are held through its 75% ownership interest (including the general-partner interest) in Williams Partners L. Pacific Northwest. power generation and infrastructure company with a diversified portfolio of assets in the United States and Canada. along with serving more than half a million natural gas end-use customers in Missouri and Massachusetts. Atlantic Power owns and operates a diverse fleet of power generation and infrastructure assets in the United States selling electricity to utilities and other large commercial customers under long-term power purchase agreements which seek to minimize exposure to changes in commodity prices.15% interest in a power generation asset in Washington State. a Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. and interstate natural gas transportation primarily in the Rocky Mountains. fractionation and transportation assets in Texas. it also owns the remaining 30% interest in Lone Star. (TSX: ATP) (NYSE: AT) of Boston and Capital Power Income L. marketing and transporting of natural gas and natural gas liquids. a joint venture that owns and operates NGL storage.500 miles of gathering and transportation pipelines. serving more than 1million customers across the country. The Southern Union board has now decided to go with Energy Transfer’s higher offer.8% premium to the partnership's volume-weighted average trading price for the 30 days leading up to October 5. 2010. storage. the companies said. the day on which Capital Power announced it was undertaking a strategic review process. is an integrated natural gas company focused on exploration and production.116 MW from 871 MW. midstream gathering and processing. ETP also holds a 70 percent interest in Lone Star NGL LLC. contract compression. ATP/AT/CPA Atlantic Power Corporation Agrees to Acquire Capital Power Income LP . Energy Transfer Partners. Southern Union. Louisiana and Mississippi. a leading diversified master limited partnership.(NYSE: ETP) is a publicly traded partnership owning and operating a diversified portfolio of energy assets including more than 17. (NYSE: WPZ).400 MW and more than 4 million pounds per hour of thermal energy. The agreed price of C$19. Black & Veatch Corporation 6 . payable in cash or shares of Atlantic Power. gathering. Okla. but it was announced on June 28 that the special committee of the board authorized Southern Union to enter into discussions with Williams.000 miles of gathering and transportation pipelines and one of North America’s largest liquefied natural gas import terminals. of Tulsa.1% premium to the Capital Power closing price of C$18. The company owns and operates one of the nation’s largest natural gas pipeline systems with more than 20.63 on June 17. Gulf Coast. is a diversified natural gas company. treating and processing assets. ETP is also one of the three largest retail marketers of propane in the United States.UN) announced on June 20 that they entered into an arrangement agreement under which Atlantic Power will acquire all of the outstanding limited partnership units of Capital Power for C$19. of Houston. Eastern Seaboard and the Marcellus Shale in Pennsylvania. processing. The merger is expected to be completed in the fourth quarter of 2011. The merger will increase the net generating capacity of the company’s projects to approximately 2. the company said. As a result of the transaction. The company’s assets have a total net generating capacity of 1.40 represents a 4. The combined portfolio of assets will consist of interests in 30 operational power generation projects across 11 states and two provinces. Regency Energy Partners LP (NASDAQ: RGNC) is a midstream energy partnership engaged in the gathering. Williams.

Btu basis $24. Natural Gas.63/ton) 11/2/2007 11/2/2008 11/2/2009 11/2/2010 1/2/2007 3/2/2007 5/2/2007 7/2/2007 9/2/2007 1/2/2008 3/2/2008 5/2/2008 7/2/2008 9/2/2008 1/2/2009 3/2/2009 5/2/2009 7/2/2009 9/2/2009 1/2/2010 3/2/2010 5/2/2010 7/2/2010 9/2/2010 1/2/2011 3/2/2011 Crude Oil Prices Start June at $100. '08. Black & Veatch Corporation 7 5/2/2011 .90 mmBtu.00 $20.00 $18. $33.23 ($77.87/bbl $4.S.' 08.00 WTI Crude Oil $26. Atlantic Power says it has obtained committed debt financing sufficient to enable it to pay the cash portion of the merger consideration.00 $12. Gas:Oil approx 50 % June 30. 500-kilovolt electric transmission line in California.00 $4. 08 Gas:Oil =97. The decision to release the oil was coordinated on several levels. including the Saudis. Henry Hub Peak oil. but plans to conduct public and/or private offerings of approximately C$423 million of debt and approximately C$200 million of equity prior to closing to fund the cash portion of the purchase price and to refinance certain existing short-term debt of CPILP.00 CAPP Coal $16.00 $0. Crude oil futures prices began recovering within a couple of days of the DOE-IEA announcement.00 $10. Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. Coal Spot Month Futures Prices Dollars per Million Btus Source: New York Mercantile Exchange and Black & Veatch $28. and drifting down into the mid-$90s. Department of Energy and International Energy Agency of the release of 60 million barrels from strategic inventories.58 Dec 24.00 $14.5 million barrels per day of Libyan crude oil exports as the summer driving season was getting underway. 74% of gas.5% ($95.00 $8. NJ.25/ton Oil low. Dip. $143.00 Natural Gas.00 $22.37 $3.00 $2. particularly after the June 8 decision by the Organization of Petroleum Exporting Countries not to increase production.37 Peak gas Jul 3. The agencies said it was to make up for the loss of 1.42/barrel) Peak coal Jul 1. $5. Dec 19.53-MW biomass project under construction in Georgia. $145. On June 23.18/bbl At Jul '08 peaks.97/mmBtu. and by July 7 were back above $98 per barrel. which the Saudis wanted. prices fell by more than $4 per barrel in response to the unexpected announcement by the U. and Largely Recover June opened with spot month light sweet crude oil futures priced at $100 a barrel on the New York Mercantile Exchange.00 $6. $24. Energy Market View Crude Oil. said Michael Korn. 2011 Coal. Jul 14. $13.00 $16. '08. '08. and an 84-mile. an energy options trader in Princeton.

” Korn said. The April and May statistics were revised downward at the same time. the Henry Hub at Erath.37 per million British thermal units or mmBtu).. La. Since that time the market has been more focused on a tightening supply of North Sea Brent crude. jobs report. Okla.42 per barrel (the equivalent of $16.” he said. or $3.23 per mmBtu. “Prices fell. The energy futures are priced at the delivery points specified by the futures contracts: Cushing. and retreated. for light sweet crude oil. and barge loading points along a section of the Big Sandy River for Central Appalachian coal.2%. and now the jobs report..Prices lost ground again by the end of the first full week of July on the release of an absolutely dismal U. natural gas at $4. Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. and central Appalachian coal at $77. found support. “The SPR (Strategic Petroleum Reserve) release was traded pretty much like any other market news in the futures market.63 per ton.S.S. Bureau of Labor Statistics reported that nationwide only 18. for natural gas. Black & Veatch Corporation 8 .000 new jobs were created during the month of June. The U. putting the unemployment rate at 9.374 per mmBtu. June ended with crude oil futures at $95.

96% 95 90 85 80 75 70 Jun‐10 Aug‐10 Sep‐10 Nov‐10 Dec‐10 Feb‐11 Mar‐11 May‐11 Jun‐11 Composite Index: Consists of 100 energy companies.34     30‐ Jun‐11: 97.66    52 Wk Low:  79. Black & Veatch Corporation 9 .  Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting.14 Change:  0. which are further organized into six sub‐categories as shown in the  following graphs.74    52 Wk High: 98.Stock Performance Composite  Index                                            Daily Values  30‐Jun‐10 to 30‐Jun‐11          (03‐Jan‐07=100) 100 S&P 500 CMRINDEX 01‐Jun‐11: 96.

94    52 Wk Low:   80.  Westar Energy Inc.  CMS Energy Corp.  Avista Corp.  UniSource Energy Corp.  Vectren Corp.  PNM Resources Inc. Black & Veatch Corporation 10 .  ALLETE Inc.91    52 Wk High: 98.  Xcel Energy Inc.  UIL Holdings Corp.  American Electric Power Co.    NWE  NVE  PCG  PNW  PNM  SCG  SO  TE  UIL  UNS  VVC  WR  WEC  XEL    Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting.  El Paso Electric Co. 80% or more of their total assets are regulated.  Pinnacle West Capital Corp.  Regulated Electric ‐ Integrated                     Daily Values  30‐Jun‐10 to 6/31/2011          (03‐Jan‐07=100) 100 Index 01‐Jun‐11: 95.  NV Energy  PG&E Corp.03% S&P 500 95 90 85 80 75 70 Jun-10 Aug-10 Sep-10 Nov-10 Dec-10 Feb-11 Mar-11 May-11 Jun-11 Regulated Electric (Integrated): Utilities involved in the generation.  Central Vermont Public Service  Cleco Corp.  TECO Energy Inc.  DTE Energy Co.  Alliant Energy  Ameren Corp.  DPL Inc.29      6/31/2011: 95.  Southern Co.  Wisconsin Energy Corp. transmission and distribution  of electricity and natural gas.  Empire District Electric Co.  Great Plains Energy  IDACORP Inc.17  Change: 0.  MGE Energy Inc  ALE  LNT  AEE  AEP  AVA  CV  CNL  CMS  DPL  DTE  EE  EDE  GXP  IDA  MGEE  NorthWestern Corp.  SCANA Corp.

  Hawaiian Electric Industries  Integrys Energy Group Inc.61      6/31/2011: 74.  Otter Tail Corp.81    52 Wk Low:   62.Electric ‐ Diversified                                       Daily Values  30‐Jun‐10 to 30‐Jun‐11          (03‐Jan‐07=100) 100 Index 95 01‐Jun‐11: 73.  PPL Corp.  Black Hills Corp  Constellation Energy Group Inc  Dominion Resources Inc. more than  20% of total assets are unregulated.  AES   AYE  BKH  CEG  D   DUK  EIX   ETR   EXC  FirstEnergy Corp.  Duke Energy Corp  Edison International  Entergy Corp. Black & Veatch Corporation 11 .  Exelon Corp.63    52 Wk High: 76.      AES Corp.  Allegheny Energy Inc.  NextEra Energy Inc.51  Change: 1. transmission and distribution of electricity.61% S&P 500 90 85 80 75 70 65 Jun-10 Aug-10 Sep-10 Nov-10 Dec-10 Feb-11 Mar-11 May-11 Jun-11 Diversified Electric: Companies that are involved in the generation.  Public Svc Enterprise Group  Sempra Energy    FE   HE   TEG   NEE   OGE   OTTR  PPL   PEG   SRE   Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting.  OGE Energy Corp.

  Covanta Holding Corp.61      6/31/2011: 74.  GenOn Energy Inc  NRG Energy Inc.63    52 Wk High: 76.  Dynegy Inc.      Calpine Corp. Black & Veatch Corporation 12 .  CPN   CVA   DYN   GEN   NRG   ORA   Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting.  Ormat Technologies Inc.Electric ‐ Merchant                                          Daily Values  30‐Jun‐10 to 6/31/2011          (03‐Jan‐07=100) 120 Index 01‐Jun‐11: 73.51  Change: 1.81    52 Wk Low:   62.61% S&P 500 110 100 90 80 70 60 50 Jun-10 Aug-10 Sep-10 Nov-10 Dec-10 Feb-11 Mar-11 May-11 Jun-11 Merchant Electric: Companies whose primary activity is the generation of electricity on an unregulated basis.

      CH Energy Group Inc.  Unitil Corp.  ITC Holdings Corp.Regulated T&D (Gas & Electric)                  Daily Values  30‐Jun‐10 to 30‐Jun‐11          (03‐Jan‐07=100) 125 Index 01‐Jun‐11: 111.  CHG   ED   ITC   NU   NST   POM   UTL   Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. 80% or more of total assets are regulated.71    52 Wk High:   114. Black & Veatch Corporation 13 .  Northeast Utilities  NSTAR  Pepco Holdings Inc.53   52 Wk Low:   87.  Consolidated Edison Inc.74% S&P 500 115 105 95 85 75 65 Jun-10 Aug-10 Sep-10 Nov-10 Dec-10 Feb-11 Mar-11 May-11 Jun-11 Regulated Transmission & Distribution (Gas and Electric): Companies engaged in the transmission and distribution of  natural gas and electricity.09    Change: 0.94     30‐Jun‐11: 112.

01  Change: 1.  ONEOK Inc.  Southwest Gas Corp.      AGL Resources  Atmos Energy Corp.  Energen Corp.  Laclede Group Inc.Natural Gas T&D (Diversified)                       Daily Values  30‐Jun‐10 to 6/31/2011          (03‐Jan‐07=100) 120 Index 01‐Jun‐11: 111.  20% or more of assets are unregulated.07% S&P 500 110 100 90 80 70 60 Jun-10 Aug-10 Sep-10 Nov-10 Dec-10 Feb-11 Mar-11 May-11 Jun-11 Natural Gas Transmission & Distribution (Diversified): Primary activities are in the natural gas sector.  National Fuel Gas Co.  Chesapeake Utilities Corp.  Questar Corp. Black & Veatch Corporation 14 .  Nicor Inc.  EQT Corp.05  52 Wk Low:   77.  AGL  ATO  CNP  CPK  DGAS  EP  EGN  EQT  LG  MDU  NFG  NJR  GAS  NiSource Inc.  El Paso Corp.86    52 Wk High:  114.  Northwest Natural Gas Co.  South Jersey Industries Inc.  New Jersey Resources Corp.42   6/31/2011: 113.  Spectra Energy Corp  UGI Corp.  Williams Cos.  MDU Resources Group Inc.  RGC Resources Inc.  CenterPoint Energy Inc.  NI  NWN  OKE  PNY  STR  RGCO  SJI  SUG  SWX  SE  UGI  WGL  WMB  Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting.  Delta Natural Gas Co. Inc.  WGL Holdings Inc.  Southern Union Co.  Piedmont Natural Gas Co.

40     Change: 2.       Atlas Pipeline Partners LP  Boardwalk Pipeline Partners LP  Chesapeake Midstream Partners  Copano Energy LLC  Crosstex Energy L.96  52 Wk High:   137.  DCP Midstream Partners LP  El Paso Pipeline Partners LP  Energy Transfer Partners LP  Enterprise Products Partners  Kinder Morgan Energy Partners  ONEOK Partners LP  Regency Energy Partners LP  Spectra Energy Partners LP  APL  BWP  CHKM  CPNO  XTEX  DPM  EPB  ETP  EPD  KMP  OKS  RGNC  SEP  Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting.46    52 Wk Low:   108.Master Limited Partnerships  (MLPs)           Daily Values  30‐Jun‐10 to 6/31/2011          (03‐Jan‐07=100) 145 Index 01‐Jun‐11: 126.P. Black & Veatch Corporation 15 .76% S&P 500 135 125 115 105 95 85 75 65 Jun-10 Aug-10 Sep-10 Nov-10 Dec-10 Feb-11 Mar-11 May-11 Jun-11 Master Limited Partnerships: Primarily owners and operators of natural gas pipeline properties with an emphasis on  midstream assets.06   6/31/2011: 130.

They will liquefy natural gas for vehicle fuel in the region. The Black & Veatch-Chemtex team has won five LNG projects in China since the beginning of 2011. China featuring Black & Veatch’s patented PRICO® process. When completed.000.” Dee Valley Water PLC operates in an area of 831 square kilometers covering Chester and North East Wales and North West England. making it available for transport via truck or ocean tanker. off-setting the use of diesel and gasoline. single-mixed refrigerant loop for natural gas liquefaction. we are committed to minimize the works’ environmental impact through waste-efficient design and construction execution that fulfils carbon reduction and waste-to-landfill objectives.5 million cubic meters) per day.” said Hoe Wai Cheong. “The Black & Veatch-Chemtex team has won more than half of all new LNG projects in China since 2006. Vice President and LNG Technology Manager for Black & Veatch’s energy business. Black & Veatch Is Selected to Refurbish a Major UK Water Treatment Plant A major refurbishment of the largest water treatment works for Dee Valley Water PLC. Europe and Africa regions in Black & Veatch’s global energy business. and 13 since 2006. PRICO is an innovative process developed by Black & Veatch to liquefy natural gas. UK. and the surrounding area. Black & Veatch Bid Manager Mat Fairfax said. It supplies 23 million cubic meters of drinking water per year to a population of 258. Tendered as a single project. a major UK water utility.000 kilometers of water mains. and the country’s size presents challenges in supplying much-needed clean fuel to local residents and businesses.3 million cubic feet (1 million cubic meters) per day. Black & Veatch Corporation 16 . India. Black & Veatch has been appointed as the design and build partner to upgrade and replace the ageing water treatment assets at the Llwyn Onn water treatment works. six treatment works and more than 50 water storage tanks and pumping stations. When completed. The water utility’s asset base consists of approximately 2.    NOTES. The process provides the lowest capital cost of competing technologies. the facility will have a capacity of 53 million cubic feet (1. The use of LNG for vehicle fuel provides both environmental and economic benefits since natural gas has lower emissions than either diesel fuel or gasoline. a simplified refrigeration system that requires minimal equipment. “Our sustained growth in China is fueled by the success of earlier projects that continue to exceed our client’s expectations. “The PRICO process has become very successful in China because of its simplified operations. The process uses a Black & Veatch-patented. The plants will be used to provide natural gas for peak shaving and vehicle fuel in the region. the facility will have a capacity of 35. “China’s natural gas pipeline infrastructure is developing.” said Brian Price. industrial and business customers. “A prominent consideration in our design will be to minimize operational cost and energy consumption which is of critical importance. and simplified control and maintenance. The Yulin Yuanheng LNG Peak Shaving Project is located in Ma Huangliang Industrial Park in Yulin City. Shaanxi Province.” The two facilities will be located in Jingbian City and Yulin City. Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. Managing Director for Asia and Middle East. “Additionally. NEWS &VIEWS New LNG Projects Give Black & Veatch Technology Significant Market Share in China Black & Veatch and Chemtex will design and build two new liquefied natural gas (LNG) facilities in Shaanxi Province. lower capital and operating costs and its flexibility in feed gas composition. all of which use the PRICO process.” The Jingbian Xingyuan LNG Project is located in Jingbian City and owned by Shaanxi Jingbian Xingyuan Industry Ltd. including domestic. will provide long-term security and quality of water supplies to Wrexham. commercial.

water supply has become the top environmental concern among survey participants and water management was rated as the business issue that could have the greatest impact on the utility industry. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized advice about investments.S. Natural gas leapfrogs nuclear and wind as the top “environmentally friendly” technology among all survey participants. to buy or sell any security or any option. Survey participants are optimistic that electric vehicles will account for approximately 8% of their annual energy load by 2025. Any opinions offered are those of the authors and not necessarily official viewpoints of the company or its other employees. All rights reserved worldwide. however. information and government matters. Additional information is available at www. This report is prepared for general circulation and is circulated for general information only. Smart Grid programs are hamstrung by a lack of customer interest and knowledge. Black & Veatch’s management consulting group is among the world’s premier strategic. Among the top findings.S.S. and will be followed by an 18-month construction period. energy portfolio. Data contained here are obtained from what are considered reliable sources. (C) Copyright 2011. All works are planned to be complete by April 2013.   Black & Veatch’s annual survey provides insights and analysis into traditional utility-focused questions regarding operations and regulations. More than 77% of respondents – virtually the same percentage as last year’s survey results – believe when fiscal realities are considered. “For the first time. The six-month design period began in April 2011. Nationwide. Coal will remain an important part of the U. Water/Energy Nexus Is a Growing Challenge Black & Veatch released the results of its fifth annual Strategic Directions in the Electric Utility Industry survey on June 13 in which more than 700 U. energy Neither the information nor any opinion expressed constitutes an offer. Black & Veatch Corporation 17 . Utility Survey Respondents Believe Significant Energy Price Increases Are Coming. and water has become the top environmental and business issue. Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. or an invitation to make an offer. which is mainly targeted at the renewal of assets that are approaching the end of their useful lives. President of Black & Veatch’s management consulting business. completeness or reliability cannot be guaranteed.S. Black & Veatch Holding Company.” he said. economic and management consulting companies specializing in energy. signifying tremendous capital investment needs across the nation’s electric utility system.300 megawatts of baseload capacity. the energy equivalent to power more than 5 million homes. 1% of annual energy load equates to approximately 5. “More than 70% of survey participants agreed or strongly agreed that energy and commodity prices would rise significantly in the next five years. participants believe that energy and commodity prices will rise significantly in the next five years. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.” Other highlights include:    Lack of national energy policy impedes investment in new technology. utility leaders took part. coal remains key in the U. “There is also a growing awareness of the nexus of water and energy issue within the They estimate that electric vehicles will account for 1% of their annual energy load by as early as next year.” said Rodger Smith. water. The £16 million upgrade forms the largest single project being delivered under Dee Valley Water’s five-year capital investment The contract will be executed in two phases. We encourage our professionals to publish individual commentary on key industry issues. future or other derivative related to such security.The rebuilt works will be constructed within the constraints of the existing site. The full survey and analysis is available online at www. its accuracy. although utility respondents still prefer nuclear.

please go to http://visitor.To subscribe without charge to any of the Black & Veatch newsletters.constantcontact.jsp?m=1102824137430&p=oi Descriptions of the free newsletters are given below: Rudden’s Energy Capital Markets Report Published by: Black & Veatch Management Consulting. Black & Veatch Corporation 18 .com/d.

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