(Source: Tribune-Review/Pittsburgh Tribune-Review)
Reliant Energy Inc., the owner of power plants in nine states, including five in Western Pennsylvania, on Monday climbed the most since trading began in 2001 after the company made a preferred- stock deal that leaves open the possibility of a takeover. Reliant soared $2.75, or 90 percent, to $5.82. The company lost more than half its market value in the week ended Oct. 3 and fell an additional 45 percent last week after saying it was considering strategic alternatives including a possible sale. Last month, the Houston-based company arranged for $1 billion of new capital, including $350 million of convertible preferred stock to First Reserve Corp. Reliant yesterday announced an agreement with First Reserve that enables it to terminate the accord for reasons including the sale of all or part of the company.
Gas rate hearings
Equitable Gas Co.'s request for a 10 percent delivery rate increase will be debated today at two public hearings conducted by an administrative law judge with the state Public Utility Commission. North Shore-based Equitable said the increase would generate $51.9 million a year and would be the first affecting the delivery part of a customer's natural gas bill in 11 years. The company has said almost one-third of the amount is needed to help financially troubled customers. PUC Judge John H. Corbett Jr. is scheduled to conduct hearings at 2 and 7 p.m. in the Gold Room of the Allegheny County Courthouse, Downtown.
Station Square changes
Hooters has closed the restaurant it operated for nearly 16 years at Station Square, and a Fieldhouse sports bar is scheduled to replace it in early 2009. Hooters shut down Oct. 5 after Forest City Enterprises, which owns Station Square, exercised its option to terminate the lease, said Tom Schneck II, director of marketing at the South Side complex. Margarita Mamas, which like Hooters was in the Station Square warehouse building, closed during the summer. No replacement business has been announced. Also, Starbucks plans to close its shop in the Bessemer Court area, but no date has been announced. Recent additions at Station Square are Zen Night Club and the Island Cafe.
Execs expect recession
Eighty-five percent of Pennsylvania business owners and CEOs think the U.S. economy is in recession or headed for one, said the Lincoln Institute of Public Opinion Research on Monday. The Harrisburg think tank said the results of its twice-annual Keystone Business Climate Survey were once again "the most pessimistic" in the poll's 13 years. The latest results topped the last survey, released in April, that showed 80 percent of those responding were pessimistic about the economy.
