Projects and contracts
Panda and El Paso to pool pipelines
Panda Energy International Inc. and El Paso Energy Corp. will work together to meet the fuel transportation needs of a new 2,720 MW generating facility being built by Panda in El Dorado, Ark. (When completed, the plant will have a nominal usage of 430,000 MMBtus of natural gas per day.) Union Power Partners LP, Panda’s project affiliate, and its pipeline affiliate, Trans-Union Interstate Pipeline LP, have signed interconnection and transportation agreements with Gulf State Pipeline, a subsidiary of El Paso Field Services. El Paso Field Services is the midstream business unit of El Paso Energy.
Johnstown America delivers
Alliant Energy has received delivery of 390 BethGon aluminum coal cars from Johnstown America Corp. They will be used to haul coal from the Powder River Basin to Alliant Energy and its subsidiaries.
Calpine launches flagship
Calpine Corp. has acquired the development rights to build, own and operate a 540 MW natural gas-fired electricity generating facility to be located near Fremont, Ohio. Representing a $340 million investment, commercial operation will begin as early as mid-2003. Named the Fremont Energy Center, it is a flagship project for Calpine’s entry into the East Central Area Reliability Council (ECAR) power market, according to Calpine senior vice president Bob Alff.
RedMeteor.com snags TCT Energy
RedMeteor.com, a global Internet-based, open commodities exchange for oil, refined products, natural gas, natural gas liquids and electricity, has acquired TCT Energy Inc., an international energy brokerage firm, to contribute to RedMeteor’s “hybrid model”-which combines human interaction through brokers with RedMeteor’s technology.
NewEnergy makes pact with Maine PowerOptions
NewEnergy has signed a contract with Maine PowerOptions, a non-profit energy purchasing consortium created and sponsored by the Maine health and higher education facilities authority and the Maine municipal bond bank. The energy contract negotiated covers the electric power generation and supply component of an institution’s electric bill-the part of the bill open to competition.
Columbia Energy Group to shed retail
Columbia Energy Group has entered into a definitive agreement to sell its retail energy mass marketing operations to the New Power Co., which was launched publicly in May as a national residential and small business energy provider serving markets where natural gas and electricity are deregulated. Strategic partners and investors in the New Power Co. include Enron Corp., IBM and American Online. The sale price was not disclosed.
Legal and regulatory
NSTAR requests help from FERC
NSTAR, the parent company of Boston Edison, Commonwealth Electric, Cambridge Electric and Commonwealth Gas, has asked the Federal Energy Regulatory Commission (FERC) to impose temporary price controls–especially during periods of high electrical usage. The NSTAR filing requested FERC impose a price limit of $1,000 per MWh for through April 2001. It also asks FERC to direct the New England Power Pool) and the New England Independent System Operator to develop procedures to determine whether the energy market is workably competitive.
Suits filed against AEP
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit in late June on behalf of all purchasers of common stock of American Electric Power (AEP) who acquired their stock between July 25, 1997 and June 25, 1999. The action is pending in U.S. district court. The complaint charges that AEP and several of its senior officers violated sections of the Securities Exchange Act Two. Other law firms filed similar suits.
Alliance RTO companies to address FERC issues
The Alliance Regional Transmission Organization (Alliance RTO) companies filed a document with the Federal Energy Regulatory Commission (FERC) that commits the alliance to address all outstanding FERC issues–including independence, pricing and configuration–with respect to the formation of a regional transmission organization that will operate in accordance with FERC Order 2000.
Mergers and acquisitions
Calpine to buy SkyGen Energy
Calpine Corp. plans to acquire Northbrook, Ill.-based SkyGen Energy LLC from Michael Polsky and Wisvest Corp., a Wisconsin Energy Corp. affiliate, for $450 million. This acquisition, along with others recently announced, will increase Calpine’s 2004 operating portfolio to over 40,000 net MW of generation.
AEP, CSW garner approval
American Electric Power and Central and South West Corp. have completed their merger, approved by the Securities and Exchange Commission (SEC) in June. The merged company will retain the American Electric Power name and will continue trading on the NY Stock Exchange under the “AEP” stock symbol. Under terms of the merger, each share of CSW stock will be converted to 0.6 shares of AEP stock.
Bonneville Power Administration goes on manhunt
Wanted: vandals who destroyed insulators on one of BPA’s 115,000-volt lines in Lane County, Ore. and insulators on one of the 500,000-volt lines near Deep Creek, Mont. Both sets of insulators were taken out with gunfire. BPA is offering up to $1,000 for information leading to the arrest and conviction of said vandals.