Duke Energy Trading and Marketing (DETM) added 1 Bcf/d of gassales and 14.07 million MWh of power sales to its marketingoperation with the purchase of NP Energy, which was at No. 20 inNGI’s power marketer ranking by volume in the third quarter. Themove pushes Duke up to No. 3 from No. 5 in gas marketing and to No.4 from the No. 7 spot in power based on third quarter volumes.

Louisville based NP Energy is one of the fastest growingmarketing operations in the country, ranking 16th in power afteronly one year. It was founded in early 1997 by Ed Casey, formerpresident of Tenneco Energy, and Mike McInnis, former president ofLG&ampE Power Marketing.

Officials of the privately-owned company, however, realized soonafter forming NP that there were limitations to what it could do.They began discussing alternatives with potential buyers and mergerpartners last summer.

“Scale and considerable credit backing have become criticallyimportant in the energy marketing industry, so Duke Energy’sresources and their track record for innovation make this a logicalstep for both parties,” said CEO Ed Casey. “We are very proud ofthe success of this venture and the performance of our employees,but it was our view that it would take greater resources and depthto achieve the growth necessary to remain a leader in thebusiness.”

The agreement calls for Duke Energy Trading and Marketing toacquire all ownership interest in NP, including interests held byNational Power of America and by an employee group. Duke willreceive NP Energy’s portfolio of marketing agreements and majorprojects under development. Duke will make a cash payment atclosing and additional payments at a later date based on theprogress of major power projects in NP Energy’s portfolio. Closingof the sale is expected by the first quarter pending approval byFERC and other governmental reviews.

NP’s risk management and project development efforts includemarketing agreements with Big Rivers Electric Corp. and severalother power cooperatives, a planned 325 MW waste coal repoweringproject with Ohio National Energy and a planned 650 MW merchantplant in Kingman, AZ, being developed by PP&ampL Global, anaffiliate of Pennsylvania Power &amp Light.

“We are very pleased to add the NP Energy assets to ourportfolio of marketing agreements because they will help build ourcritical mass in the U.S. West and Midwest,” said DETM PresidentBrad Karp. “Additionally, our California operations are in place tomanage the Arizona facilities.” Duke bought three power plants fromPG&ampE Corp. earlier this year.

DETM is the wholesale energy trading and marketing arm of DukeEnergy and serves as the exclusive marketer for the North Americannatural gas production of Mobil Corp.

Rocco Canonica

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