Energy swaps

Vattenfall makes appointment at new trading unit

Erik Saether has become head of European trading operations at Vattenfall Trading Services, a new trading unit based in Hamburg, Germany. This follows a merger of the Nordic and continental European trading operations at Swedish power producer Vattenfall. Saether (pictured) is currently managing director of Vattenfall Europe Trading in Hamburg. Vattenfall’s senior executive vice-president and chief financial officer, Matts Ekman, says: “Energy trading has long been an international enterprise. By integrating our trading activities, we will get synergies in IT, credit risk and cross-border trading.” The Nordic trading unit, led by Erik Hagland, will remain in Stockholm, Sweden and function as a regional office of Vattenfall’s European Trading Services.

TXU chief announced
Texas power giant TXU has announced a new chief executive. Erle Nye’s replacementwill be US energy company Entergy’s chief financial officer John Wilder.Wall Street has reacted favourably to Wilder’s appointment: TXU sharesrallied by 14% at the news. Wilder, 45, is also likely to be named chairman afterNye steps down from that post in May 2005, although Nye is likely to remain onTXU’s board. Meanwhile, Entergy has already named Wilder’s replacementas Leo Denault, who will become chief financial officer and executive vice-president.Denault joined Entergy as vice-president of corporate development in 1998. Hewill report to chief executive Wayne Leonard, who praises Denault as “highlydisciplined and very focused on risk management and value creation.”

Hudson chairs PUCT
Paul Hudson has taken over as chairman of the Public Utility Commission of Texas (PUCT), having been nominated in August 2003 by governor Rick Perry. Hudson had been the director of policy in the governor’s office, where he focused on energy, economic development and telecommunications issues, and served as the office’s liaison to the PUCT and other state agencies. Before joining the governor’s staff in 2001, he was senior economic analyst and adviser to the PUCT. Hudson replaces former chairman Becky Klein, who resigned in January to run for Congress. Hudson’s term will expire on September 1, 2009. Governor Perry says: “Paul Hudson’s expertise has played a valuable role in helping make Texas a model for sound energypolicy.”

Deutsche hires top gas trader
As part of a new foray into the US natural gas trading and risk management business, Deutsche Bank has hired Foster Smith as head of US natural gas trading in its commodities division. Formerly senior vice-president and head of derivatives trading at Houston-based energy trading firm El Paso Merchant, Smith will be part of the firm’s global energy trading team headed by Kevin Rodgers in New York. Smith will oversee an expanding group of traders responsible for trading and risk management at the bank.

Ebetino to fill Peabody post
Charles Ebetino has been named senior vice-president of US trading, transportation and market development for Missouri-based Peabody Energy’s sales and marketing subsidiary Coalsales. Ebetino will oversee the coal company’s domestic coal market trading, brokerage, development and transportation operations. He will continue to report to sales, marketing and trading executive vice-president Richard Whiting. Ebetino was previously senior vice-president of market developmentfor Coalsales.

All change at AEP in UK and US
Stuart Staley has left his post as head of international wholesale energy marketing, trading and generation at the London office of utility American Electric Power, the US’s largest electricity generator, along with five other senior executives the firm would not name. The move is part of a restructuring as the energy giant refocuses on its US activities. According to a company spokesperson: “This is part of a process to align staffing levels with current operations as we continue to prepare for divestiture of Fiddler’s Ferry and Ferrybridge [UK power stations].” AEP’s head power trader Bob Kapp and head of coal trading Peter Bradley have also left the London office.

Meanwhile, Charles Patton, vice-president of governmental affairs at AEP in the US, has been named Texas state president for the Ohio-based utility. Based in Austin, Patton replaces Julio Reyes, who becomes the Oklahoma state president following the retirement of Pete Churchwell. Patton oversaw governmental affairs for Texas for utility Central and South West (CSW) for four years before it merged with AEP in 2000. Prior to joining CSW, Patton worked in regulatory affairs and management at Houston Lighting & Power. Julio Reyes, an electric utility industry veteran of some 30 years, has held the Texas state presidentpost since 2001, and will take over the Oklahoma City-based presidency immediately.

Leading light switches to Lazard
Utilities analyst Jim von Riesemann has resigned from JP Morgan Chase, to join rival bank Lazard Freres’ power and utilities investment banking group. A prominent figure in the power and utility field, Von Riesemann will advise companies on mergers and acquisitions in his new position. Before taking the research post at JP Morgan, he was a senior power and utility analystat Morgan Stanley. Von Reisemann’s vacancy has yet to be filled.

City Light names Carrasco
One of the US’s largest public utilities, Seattle City Light, has named Jorge Carrasco as its new director. He replaces former superintendent Gary Zarker. Carrasco has the task of boosting the firm’s finances and public image after rates soared by nearly 60% during the energy crisis of 2000-2001. Carrasco, 54, was formerly president of New Jersey water utility American Water Services, and has held senior posts at water utilities in Arizona, Texas andCalifornia.

Brukardt makes the change
David Brukardt will leave his post as vice-president and treasurer at Washington-based energy company Avista Corp in late March. He will be replaced by senior vice-president Malyn Malquist, who will take on the treasurer role in addition to his function as chief financial officer. Brukardt was previously vice-president of corporate relations and strategic planning before being elected to his current postin 2003.

People in brief

Banking veteran Leslie Biller has been elected to California-based energy firm PG&E Corporation’s board of directors and to the board of directors of its utility unit, Pacific Gas and Electric Company. Biller, 55, has served as advisory director on both boards for the past year. Joe Barton has been chosen by US Republicans as chairman of the House Energy and Commerce Committee. He will be responsible for energy, environment, health, telecoms and trade policy, and says he will “ensure a comprehensive energy bill passes the Senate”. Barton replaces outspoken republican congressman Billy Tauzin, who resigned as chairman in mid-February for health reasons. Barton’s current position as chair of the committee’s energy and air quality subcommittee is likely to be filled by congressman Ralph Hall. Patrick Laird has been promoted to vice-president, corporate security from security manager, corporate security at Chicago-based utility Exelon Corp. Laird’s career at Exelon spans some 17 years. He is also chair of the Edison Electric Institute Security Committee. James Varanese (pictured) has been appointed as a partner in the projects and finance group at international law firm Clyde & Co, with responsibility for energy, finance and negotiated acquisitions. Formerly a partner at international law firm Coudert Brothers, Varanese will be based in London and joined by existing partners Pii Ketvel and Andrew Wells. Utility Portland General Electric (PGE) has named John Ballantine and Corbin McNeill, former chief executives of utility holding company Exelon, to its board of directors. The appointments will make changes to a board previously dominated by PGE and Enron executives. Manfred Scholle, chairman of German utility RWE’s Gas AG unit, is to leave the company in April. There is no word yet of a successor. Scholle leaves on good terms, but had opposed RWE chairman Harry Roels’s new restructuring plans for the company. Jan Carr has been elected vice-chair of the Ontario Energy Board. Carr is currently managing director of consulting firm Barker, Dunn & Rossi Canada.