Houston-based El Paso Energy will develop a 544-MW gas-firedmerchant power plant in Milford, CT. in a joint venture with PowerDevelopment Company (PDC). The $225-million project is beingdesigned to reach commercial operation at the same time Connecticutis expected to begin full retail electricity supply competition,currently estimated in the year 2000. Gas supplies are expected tocome to the plant via the Iroquois gas pipeline. The partners areexpected soon to announce development of a second, similar plant inCT. Most of El Paso Energy’s recent power plant development hasbeen in international markets. The partnership with PDC brings ElPaso Energy back to U.S. gas-fired power plant development. A unitof El Paso Energy acquired Tenneco Energy and Tennessee GasPipeline Co. in 1996.

A study released by XENERGY’s Consulting Division yesterdayfinds customers in Pennsylvania and California are seeing verymodest savings of 1-5% off their energy bills from retail wheelingso far. Residential customers in Pennsylvania, where one of thelast major pilot programs is underway, have seen bill savingsranging from 1% to 5% beyond the basic participation credit. Totalcustomer savings in early supply contracts in California areranging from 2% to 3%. “The relatively small savings that customersare seeing may indicate that suppliers are less willing to attractcustomers by selling below cost, which happened in some of theearlier pilots,” said Alan Destribats, senior vice president inXENERGY’s Consulting Division and the study’s project manager. “Forlarge states such as California and Pennsylvania, suppliers cannotafford to incur losses on such a scale.” The study, which is in itsthird phase, is being sponsored by more than 40 utilities. Destribats said XENERGY plans to soon have information on a Website with analyses of more than 40 competitors, as well as detailedsummaries of regulatory activities in all 50 states. For detailscontact Alan Destribats at XENERGY at 781-273-5700.

Columbia Gulf is soliciting interest through March 20 in aproposal to expand its East Lateral. The expansion would add firmreceipt capacity in the segment between Venice in Louisiana’sMississippi River delta and Centerville (St. Mary Parish, LA). CallStephen Hanshaw at (713) 267-4774 or Janice Felton at -4210 forinformation.

Enova International and Enron Mexico are the two U.S. companiesamong the 12 who have bought the bid packages to build a $1 billiongas distribution network for Mexico City. On April 16, bidders willindicate the Mexican companies with which they will form strategicalliances or consortia, and technical bids will be opened. Economicbids will be opened June 30. Other countries represented bycompanies buying the bid package are Mexico, Spain, Japan, France,Chile, Canada, and Argentina.

Vastar Resources said an exploratory well testing the Calgaryprospect on High Island Block 169 in the Gulf of Mexico shelf areais the company’s seventh gas discovery in its last eight shelfwildcats since last year. Production is expected to begin late inthe fourth quarter. The well reached a depth of 14,530 feet andencountered more than 100 feet of gas pay. It is about 50 mileswest of Galveston, TX, in 53 feet of water. Vastar is the operator,with 75% working interest. Union Oil Company of California, dbaSpirit Energy 76, holds a 25% working interest. Vastar is active in37 key producing fields on the shelf. During 1996 and 1997 thecompany expanded its total shelf lease holdings by 29% to 293blocks, adding nearly 70 blocks through lease sales or acquisitionsfrom other companies.

Westinghouse reported it had just built the largest solid-oxidefuel cell (SOFC) generating system for a Dutch energy distributionutility. The system, which runs on natural gas, is delivering 106KW to the electric grid plus 80 KW of thermal power to the area’sdistrict heating system.

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