Project and contracts
AEP begins sale: American Electric Power (AEP) is soliciting bids for the purchase of all the generating assets of its AEP Texas Central Co. subsidiary (formerly known as Central Power and Light). AEP has retained Credit Suisse First Boston LLC as its exclusive financial advisor for the sale.
Sempra earns ranking: Sempra Energy has earned the number five spot on Fortune magazine’s prestigious annual list of “America’s 50 Best Companies for Minorities.” They have earned a top-five position on the list for six consecutive years, since Fortune introduced the rankings in 1998.
Encorp enters Mexico: Encorp signed an agreement with Mexico City businessmen to provide power technology software and equipment valued at $870,000 for an $80 million entertainment complex in the capital city. The complex will be supported by a combined-heat-and-power plant and is scheduled to be completed in 2005.
Office Depot signs deal: Strategic Energy announced two multi-year agreements with Office Depot to supply electricity to locations in Michigan and Ohio. Financials were not disclosed.
Entergy selected to manage: Entergy Nuclear is negotiating a management services agreement with Nebraska Public Power District to provide management to Cooper Nuclear Station. No further details were released.
Big Apple terminates deal: Big Apple Energy has provided written notice to NuEnergy Group that it has withdrawn from the letter of agreement and memorandum of understanding for the business combination announced in June. Big Apple points the finger at NuEnergy Group’s “failure to adequately respond to concerns raised under the due diligence provision.”
Catamount quits wind farm: Equinox Wind Partners, a joint venture between Endless Energy Corp. of Yarmouth, Maine, and Catamount Energy Corp. of Rutland, Vermont, formed to develop a 9 MW wind energy project on Little Equinox Mountain in Manchester, Vermont. Catamount Energy is ending its involvement in the project.
Conversant: Phillip M. Duncan has joined as vice president of product development.
American Public Power Assn.: Glenn Cannon, general manager for Waverly Light and Power, was named chair of the board of directors.
U.S. Energy Systems: Thomas J. Noonan is vice president and chief accounting officer. Frank Fitzgerald is vice president and treasurer.
Georgia Power: C.B. Harreld has been named chief financial officer.
Edison Electric Institute: Allen Franklin, chairman, president and CEO of Southern Company, was elected chairman.
Westinghouse: Robert Bonner is vice president of customer relations and sales for Russia and Eastern Europe.
Wisconsin Energy Corp.: Allen L. Leverett has been named chief financial officer.
TVA: Michael E. Rescoe is chief financial officer and executive vice president of financial services.
Calpine: Susan Wang has been appointed to the board of directors and audit committee.
Constellation Generation Group: Peter Katz has been named senior vice president.
Allegheny Energy: Paul J. Evanson has been elected chairman, president and CEO.
NEI: Clint Williamson is director of legislative programs.
Legal and regulatory
Retail dies again: A California Senate energy committee has voted down Assembly Bill 428 that would have restarted retail electric choice in the state by 2005. Consideration of another bill to restore electric choice, Assembly Bill 816, has been postponed until 2004.
FERC upholds contract: The Federal Energy Regulatory Commission has found no evidence to support a challenge filed in Feb. 2002 by the California Public Utilities Commission and the California Electricity Oversight Board against a Sempra Energy contract, along with 23 others. A request for refunds in the Pacific Northwest was also denied.
BPA rates could increase: The Bonneville Power Administration estimates its wholesale power rates could go up approximately five percent over current rates for the next three years, beginning Oct. 1. (They had originally estimated 15 percent hikes in Feb.)
Dynegy settles: Dynegy Inc. has reached an agreement with the Kroger Co. related to four power supply contracts. The agreement, which must be FERC-approved, would see Kroger paying Dynegy $110 million to terminate two contracts and restructure two others.
Montana sues: Montana Attorney General Mike McGrath has filed suit against several energy companies doing business in the West, claiming that energy consumers in his state were defrauded out of millions paid in excessive rates during and since the “energy crisis” of 2000 and 2001. The companies were not publicly named in his announcement.
Mirant goes bankrupt: Mirant has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Additionally, certain of the company’s Canadian subsidiaries will file an application for creditor protection under the Companies Creditors’ Agreement Act in Canada. Excluded from the filings are the company’s operations in the Philippines and the Caribbean.
Mergers and acquisitions
Companies to fund venture: Carl C. Icahn and Panda Energy International have signed a joint venture to co-fund Panda Acquisitions Group, which will actively seek to purchase U.S. energy assets and related infrastructure.
Allegheny completes sale: Allegheny Energy Supply Conemaugh LLC has completed the sale of its 83 MW share of the coal-fired Conemaugh Generating Station to UGI Development Co. for about $51.25 million.
TECO completes purchase: TECO Power Services has completed the previously announced purchase of Panda Energy’s interest in both the Union Power Station (Arkansas) and the Gila River Power Station (Arizona).
Cargill buys Mirant interest: Cargill Ltd. has completed the acquisition of Mirant’s Canadian natural gas aggregator services contracts, much of its natural gas transportation contracts and some of its storage contracts.
Synex acquires Wolverine: Synex International Inc.’s subsidiary Synex Energy Resources has acquired the assets of Wolverine Power Corp., comprising four hydroelectric facilities in Michigan under a foreclosure procedure. They are negotiating for the remaining assets of the corporation.