PROJECTS AND CONTRACTS
Alliant partners in Chicago merchant: Alliant Energy Resources Inc., a subsidiary of Alliant Energy Corp. will partner with Corn Products International Inc. to build a 750 MW cogeneration merchant power plant, Argo Power LLC, near Chicago. Completion is slated for 2003.
Westinghouse wins contract: Westinghouse Electric Co.’s nuclear services business unit has been awarded a contract for reactor pressure vessel inspection in October 2002 at the New York Power Authority’s J.A. FitzPatrick Nuclear Station.
Entergy, Shaw join forces: Entergy Corp. and the Shaw Group Inc. will create Entergy-Shaw, a new company to provide management, engineering, procurement, construction and commissioning services to build electric power plants. Entergy-Shaw is already planning the development of a market-driven reference plant design and a gas turbine rollout program. Entergy and Shaw will each own a 50 percent interest in the new company.
PG&E expands portfolio: PG&E Corp.’s National Energy Group signed a 14-year tolling agreement with Liberty Electric Power LLC, a subsidiary of Columbia Electric Corp. Under the contract terms, National Energy acquired long-term capacity rights at the 530 MW Liberty Electric Power Project, Philadelphia.
Toyota looks greener: Toyota Motor Sales U.S.A. Inc. will purchase renewable power from Green Mountain Energy. The agreement, one of the largest green energy contracts in California, is effective immediately and serves Toyota’s U.S. headquarters in Torrance, Toyota Logistics Services Inc., Toyota’s port facility in Long Beach, the Toyota Los Angeles Regional Sales Office in Irvine and the North American parts center in Ontario.
RFC Capital closes deal: RFC Capital Corp., a specialty finance company serving high-growth businesses in technology-driven and deregulated industries, will fund the revolving enterprise value loan to provide up to $15 million to ECONnergy Energy Co. ECONnergy plans to use the RFC facility to capitalize on growth in the energy marketplace.
Oglethorpe and APM enter into agreement: ACES Power Marketing LLC (APM) will provide Oglethorpe Power with energy trading and related risk management services, which include overseeing aspects of Oglethorpe’s trading: negotiations, credit and contracts.
Enron to supply Prudential: Enron Energy Services, a subsidiary of Enron Corp., signed a 10-year energy management agreement with Prudential Insurance of America. Enron will supply electricity and natural gas for Prudential’s 21 corporate-owned office buildings in N.J., Penn., Ariz., Conn., Ill., Fla., and Minn.
LEGAL AND REGULATORY
PURPA Reform Group calls for repeal: Members of the PURPA Reform Group were disappointed with draft electricity legislation (which doesn’t include a repeal of the 22-year-old Public Utility Regulatory Policies Act) proposed by House Commerce Committee chairman Thomas S. Bliley. Cynthia Stinger, a co-chair of the PURPA Reform Group and vice president of government affairs at GPU Inc., requested backing for PURPA reform legislation similar to the energy and power subcommittee bill, H.R. 1138.
Senator calls for mandated renewable: Sen. Peter G. Fitzgerald, R-Ill., has proposed an amendment to the electric restructuring bill being examined by the Senate Energy Committee. It would require the federal government to buy at least 3 percent of its energy from renewable resources and utilities to include a fuel breakdown with every customer’s bill-a proposal that mirrors Illinois legislation that passed in 1997.
MERGERS AND ACQUISITIONS
Pepco to sell generating assets: Potomac Electric Power Co. (Pepco) will sell a large portion of its electric generating assets to Southern Energy Inc. for $2.65 billion. Pepco is already slated to receive $152.5 million for its interest in the Conemaugh station, making the total for Pepco around $2.8 billion. Southern Energy will receive a 1,412 MW coal-fired generating station, along with a 2,339 MW oil-fired station and an 837 MW gas-fired station-all in Maryland-plus a 482 MW coal-fired station in Virginia.
Duke Energy IPO postponed: Duke Energy Field Services (DEFS), a subsidiary of Duke Energy Corp. and Phillips Petroleum Co., has postponed the initial public offering of common shares of the company because of volatile market conditions. Shares of DEFS will be offered to the public when market conditions are more favorable. In the meantime, DEFS will continue to be owned 69.7 percent by Duke Energy and 30.3 percent by Phillips.
PNM shareholders approve new co.: Shareholders of Public Service Company of New Mexico (PNM) approved management’s plan to create a new holding company with separate subsidiaries for the company’s regulated utility operations and its competitive power generation and marketing business.