News Briefs

MERGERS, ACQUISITIONS

NRG pockets nearly 6,000 MW: NRG Energy Inc. announced plans to acquire a 5,961 MW portfolio of operating projects and projects in construction and advanced development from LS Power LLC for about $658 million. Additionally, NRG has the opportunity to acquire ownership interests in the next 3,000 MW of generation projects developed and offered for sale by LS Power and its partners.

Dynegy, NRG to buy from Sierra Pacific: Dynegy Inc. and NRG Energy Inc. announced a major expansion of their co-owned generation portfolio in the West through asset purchase agreements to acquire 1,330 MW of power generation facilities from Sierra Pacific Resources. The facilities include the 740 MW Clark Generating Station and 509 MW of the 605 MW at Reid Gardner. The Las Vegas-serving facilities are currently owned by Sierra Pacific subsidiary Nevada Power Co.

Allegheny Energy to buy three Enron plants: Allegheny Energy Inc. and Enron Corp. announced that Allegheny Energy Supply Co., Allegheny Energy’s unregulated generation subsidiary, and Enron North America, a wholly-owned subsidiary of Enron, have signed an agreement allowing Allegheny Energy Supply to purchase three Enron natural gas-fired merchant generating facilities (total of 1,710 MW) in the Midwest. The purchase will include the Gleason plant in Tennessee, the Wheatland plant in Indiana, and the Lincoln Energy Center plant in Illinois.

U.S. Energy, Cinergy to acquire ZAPCO: U.S. Energy Systems Inc., an independent power producer, and its joint venture partner, Cinergy Solutions Inc., an affiliate of Cincinnati-based Cinergy Corp., announced a definitive merger agreement to acquire Zahren Alternative Power Corp. (ZAPCO), a Connecticut-based developer and operator of renewable energy projects around the country. The merger, valued at about $98 million, is expected to close early this year.

PROJECTS AND CONTRACTS

New Calif. wind project to deliver this spring: SeaWest WindPower Inc. and PG&E’s National Energy Group announced the construction of the 44.4 MW Mountain View Power Partners wind energy project. Through an RFP issued by SeaWest in March 2000, National Energy Group will acquire the project from SeaWest and begin delivering power to California customers in April.

Future Energy, Morgan Meguire ink agreement: Future Energy Resources Corp. has signed a multi-year marketing and representation agreement with consulting and project development firm Morgan Meguire. The two companies will develop animal waste-to-energy projects in the Mid-Atlantic and Texas. Morgan Meguire will be working to secure potential animal growers, power purchasers and facility locations, as well as assisting in financing, permitting and community outreach.

ENERGY MARKETING

Tenaska, OPPD market in Iowa: Tenaska Power Services Co. and Omaha Public Power District (OPPD) have been jointly selected to perform marketing services for Iowa’s largest municipal water and electricity utility, Muscatine Power and Water. The companies will market excess capacity and purchase supplemental supplies required by the utility, as well as provide other related marketing services. This is the third agreement signed since Tenaska Power Services and OPPD have formed an alliance; the two companies executed similar arrangements with Missouri River Energy Services and Wisconsin Public Power Inc.

Sempra wins Air Force contract: Sempra Energy Solutions, a subsidiary of Sempra Energy, has begun a 15-year, energy-savings performance contract with Goodfellow Air Force Base near San Angelo, Texas. Sempra Energy Solutions conducted an audit of the current energy use practices and developed a new engineering design. They’ll complete the construction and conduct the ongoing monitoring for the term of the contract. The project is expected to save $244,000 a year in energy consumption costs, as well as $10,000 annually in facility maintenance costs.

Calpine signs EOG Resources: EOG Resources Inc. and Calpine Corp. have inked a marketing agreement. EOG has agreed to sell 10 million cubic feet of natural gas per day directly to Calpine. The transaction was effective January 1 and will terminate on Dec. 31, 2001.

FINANCE

Avista Advantage: Avista Corp. subsidiary, Avista Advantage, has added two capital firms-WS Investment Co. and Cascade Investment LLC-as participants in the company’s private equity offering. This investment closes the Series A investment round which was led by EnerTech Capital Partners earlier this month. Terms of the agreements were not released.

Southern California Edison: Southern California Edison is offering a new way for its small business customers to obtain financing for equipment. Through an agreement with Aetna Capital, businesses can lease or purchase new or used equipment-ranging from $1,000 to $150,000-for manufacturing, industrial, technological or other applications.

NxtPhase Corp.: NxtPhase Corp., a developer of optical systems for the control and measurement of electric power, announced the completion of a $6 million private financing. The proceeds will be used for working capital and to fund an acquisition. Each investor in this current round of financing is an existing NxtPhase shareholder: Working Opportunity Fund Ltd., Western Technology Seed Investment Fund, Canadian Science and Technology Growth Fund Inc. and Hydro-Quebec Capitech Inc.

Author

  • The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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