El Paso Energy is making its first entry into the Nevada powermarket with its planned acquisition of Bonneville Pacific Corp. for$63 million. The deal includes a 50% interest, through BonnevilleNevada Corp., of Nevada Cogeneration Associates No. 1 (GarnetValley), an 85 MW power plant that sells power to Nevada Power Co.under a long-term contract. Texaco owns the other 50% of the plant.

The deal also includes Bonneville Pacific Services, a whollyowned subsidiary, which provides operations and maintenanceservices under long-term contract to the Garnet Valley and BlackMountain cogeneration facilities in the Las Vegas area. The BlackMountain plant is owned 50-50 by Texaco and Dynegy.

“The Bonneville Pacific acquisition represents our first entryinto the Nevada power market, one of the fastest growing regions inthe country,” said Greg Jenkins, president of El Paso MerchantEnergy.

“This continues the expansion of our power generation platformand brings significant net present value. We anticipate furtherexpanding our presence in Western United States power generationprojects in the near future.”

El Paso does not deliver gas directly to the plants, but aSouthwest Gas lateral off of El Paso Natural Gas delivers one-thirdof the gas burned at the plants, an El Paso spokeswoman said.

The price El Paso is paying excludes Bonneville Pacific’spreviously announced sale of Bonneville Fuels Corp. in a dealexpected to close by Oct. 31. El Paso’s acquisition of BonnevillePacific will close by the first quarter of 2000.

CEC Resources agreed to buy Denver-based Bonneville Fuels, anoil and gas exploration and production company, for about $24million in cash, subject to certain adjustments. CEC Resources willassume the debt that remains with Bonneville Fuels.

Bonneville Pacific went into bankruptcy in 1992. Following thesale of assets, the company emerged from bankruptcy in Novemberlast year. Earlier this year the decision was made to sell thecompany in two parts, exploration and production and powergeneration.

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