NEWS BRIEFS


Companies

Exelon rejects offers: Exelon Generation Co. and British Energy have agreed to reject all offers for the purchase of AmerGen Energy Co. and to terminate the auction process. Both parties reviewed the bids and concluded none were “adequate.” With the rejection of these offers, Exelon no longer intends to sell its interest in AmerGen. With the termination of the sale process, Exelon has decided to continue its investment in AmerGen, and the three AmerGen plants will continue to operate as they have to date.

ComEd to contribute: ComEd will contribute a total of $40 million to fund programs to boost energy efficiency in Chicago and the rest of Northeastern Illinois under an agreement reached between the company, the Citizens Utility Board and other consumer agencies. The agreement, if approved by the Illinois Commerce Commission, would settle litigation over whether ComEd’s “mismanagement” contributed to higher costs for repairs of the company’s distribution system.

TXU cuts management: TXU has made management changes designed to reduce costs, streamline the organization and increase focus on the operations of its core businesses in North America, according to the company. In March, the company announced that it was in the process of reducing officers overall by about 30 percent as part of the company’s action plan to cut 2003 costs by a net $250 million from 2002 levels.


Mergers & acquisitions


Tetra Tech purchases portion of Foster Wheeler: Foster Wheeler Ltd. announced the sale of the operating business of its wholly owned subsidiary, Foster Wheeler Environmental Corp. (FWENC), to Tetra Tech Inc. As of the close, the company received immediate net cash proceeds of approximately $80 million. Foster Wheeler also expects to receive an additional $57 million before the year’s end under FWENC’s contract with a federal agency, which was not included in the sale.


Legal & regulatory

Wisconsin Power & Light requests increase: Wisconsin Power & Light Co. filed a request with the Public Service Commission of Wisconsin for approval to increase overall retail base rates. The company is requesting an overall increase of $65.1 million or 6.62 percent. If the proposed rate changes requested were applied to the 2003 rate levels, typical residential electric customers using 600 kWh per month would see a monthly increase of approximately $5.08 on their bills.

PacifiCorp given OK: ScottishPower announced that its U.S. subsidiary, PacifiCorp, was granted recovery of approximately $9 million of the company’s $20 million general rate case request from the Wyoming Public Service Commission. As part of the proceedings, the Commission disallowed PacifiCorp’s requests for $60.3 million of net excess power costs related to the western power crisis and for $30.7 million to replace the lost generation due to the Hunter 1 plant failure.


Executive appointments

CMS Energy Corp.: Belinda Foxworth was elected deputy general counsel.

El Paso Corp.: Clark Smith, formerly president of global power, will become president of trading. Robert Baker, formerly senior vice president and deputy general counsel, will be promoted to president of global power.

American Superconductor: Stanley Piekos has resigned his position as senior vice president, finance and corporate development, and chief financial officer.

KEMA: Dr. Ralph Masiello has joined the company as senior vice president of bulk power services.

Invensys: Ryan Roberts has been appointed vice president and general manager of services for the company’s manufacturing and process solutions business unit.

EPRI: Dave Modeen is chief nuclear officer and vice president of the nuclear power sector.

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News Briefs

Companies

Microsol, ATS expand: Microsol Ltd. and Automation Technologies & Services (ATS) announced the formation of a new organization, which will provide offerings of equipment and services for monitoring, control and asset-management of electric utilities and transit companies for the North American market. Samuel C. Sciacca, president of ATS, will also serve as CEO of the newly formed venture to be known as Microsol Inc.

Duke nuke has best year: Duke Power’s nuclear program in 2002 compiled its most productive year in history, setting a host of company records. Duke Power-operated nuclear stations had a combined capacity factor of 95.21 percent, considerably above the company’s previous best of 92.33 percent set in 2000. According to the Nuclear Energy Institute, the national average capacity factor through September 2002 was 91.9 percent.

Detroit Edison turns 100: Detroit Edison marked 100 years of serving Detroit and southeastern Michigan this winter. One hundred years ago, the population of Detroit Edison’s service area was a mere 313,000. Detroit Edison now serves 2.1 million residential, commercial and industrial customers. With just one power plant in 1903–with a capacity measure in kW–Detroit Edison has grown to a network of nine power plants in daily operation with a capacity of more than 11,000 MW.

Black & Veatch creates new division: Black & Veatch Corp. announced the creation of its new enterprise consulting division and the appointment of Rodger E. Smith, a former director in management consulting from Pricewaterhouse-Coopers to lead it. The new division will provide business consulting services to electric and water utilities.


Legal & regulatory

Allegheny rejects allegations: Allegheny Energy Inc., responding to a lawsuit filed by the California Department of Water Resources (CDWR), announced that it categorically rejects the matters alleged by CDWR, allegations which represent “a continuation of the agency’s ongoing efforts to invalidate a fair and binding contract,” according to the company. The CDWR has alleged that the company defaulted on its electricity supply contracts with the agency.

Energy commission predicts promise: The California Energy Commission predicts that electricity demand and supply for the state looks promising this summer, and supplies should continue to remain positive through the year 2005. According to testimony presented before the California State Senate Energy Committee, California should have a nine percent operating reserve during the critical months of July, August and September, even without counting spot market imports. With those included in the forecast, operating reserves increase to 15 percent during those months.

Appeals court overturns Novia Scotia tax case: Nova Scotia Power Inc. is seeking leave to appeal to the Supreme Court of Canada the recent Federal Court ruling that overturned a Tax Court of Canada decision in the company’s favor. The case arose when Nova Scotia Power claimed deductions related to capitalized interest on assets constructed by its predecessor. The Canada Customs and Revenue Agency (CCRA) disallowed the deductions claimed, and Nova Scotia pursued the issue successfully through the Tax Court. CCRA appealed the decision to the Federal Court of Appeal, which has overturned the Tax Court ruling.


Mergers and acquisitions

Mirant, Alliant complete sale: Mirant has completed the sale of its 309 MW natural gas-fired power plant in Neenah, Wis., to Alliant Energy Resources for $109 million. The two companies announced the sales agreement last July.

AEP to sell portion to Pedernales: American Electric Power (AEP) has reached an agreement with Pedernales Electric Coop, a private, consumer-owned electric coop based in Johnson County, Texas, to sell a small portion of AEP’s electric distribution facilities in Central Texas to Pedernales for $9.5 million. Facilities being sold are in areas that currently border or are surrounded by Pedernales facilities.

Constellation purchases a portion of Dynegy: Constellation Energy Group has purchased the Alberta-based electricity division of Dynegy Canada Inc. The newly purchased division will be a part of Constellation NewEnergy. Terms of the agreement were not disclosed.

TransAlta to purchase half of generator: TransAlta USA Inc. has agreed to acquire half of a U.S. generator from El Paso Merchant Energy, a business unit of El Paso Corp. TransAlta will purchase El Paso’s 50 percent interest in CE Generation LLC, including the right to a 50 percent interest in a geothermal development project. MidAmerican Energy Holdings Co. will continue to own the other 50 percent interest of both CE Generation and the geothermal development.


Projects and contracts

Calpine signs deal: Calpine Corp. has entered into a three-year power purchase agreement with Nevada Power Co., a subsidiary of Sierra Pacific Resources. The arrangement calls for the delivery of 100 MW of on-peak and 50 MW of off-peak power. Calpine expects the contract to generate annual revenue of approximately $43 million.

Schott to renovate power system: Schott Applied Power Corp. has been chosen by the National Park Service to renovate the power system at Natural Bridges National Monument near Moab, Utah. Financial terms were not disclosed.

City of Waco chooses Texas Commercial: The City of Waco has selected Texas Commercial Energy (TCE) as its retail electric provider in a competitive review designed to meet the city’s budget and management needs. The contract is valued at more than $3.5 million annually.

Executive appointments

Nuclear Energy Institute: Linda Nahin, vice president, has left as part of the company’s reorganization.

California Public Utilities Commission: Bill Ahern is executive director. He replaces Wes Franklin.

CES International: Timothy Harvey has been named CEO and president.

Midwest ISO: Jim Torgerson is president and CEO. Ronald McNamara is vice president of regulatory affairs and chief economist. Richard Doying is director of market development and analysis. Mark Griffin is executive director and chief of staff.

Entergy Nuclear: Jerry Yelverton, chief executive office for Entergy’s nuclear businesses, will retire March 31. Gary Taylor will assume the role of CEO.

TECO Energy: Sherrill Hudson has been named to the board of directors.