Texas Utilities said talks with Britain’s The Energy Group continue despite the announcement earlier this month that PacifiCorp increased its bid for the firm by 10% to $12.62/share, including the assumption of $4.1 billion in Energy Group debt. PacifiCorp’s offer is valued at $10.2 billion. TU said it will pursue The Energy Group “in full recognition of the regulatory approvals that it may require in order to make such an offer and that any such offer would need to compare favorably with PacifiCorp’s renewed offer which expires March 9, 1998, unless extended.” TU has one less opponent, however. The Japanese banking firm Nomura announced last week it is no longer pursuing a merger with The Energy Group. PacifiCorp also welcomed the news.

Enron Energy Services said it will be opening a regional office in Philadelphia to compete for customers in the Mid-Atlantic region of the United States. The office will be located in the Center City area of Philadelphia. “Pennsylvania has taken a giant step toward giving its businesses and residents a true competitive electricity marketplace,” said Enron CEO Kenneth L. Lay, adding the company will expand the office as electric competition increases.

Portland Natural Gas Transmission announced it secured financing commitments from two Canadian banks for construction of its proposed 292-mile interstate pipeline project. Bank of Montreal and TD Securities (USA) Inc., a securities affiliate of Toronto-Dominion Bank, have been selected to provide PNGTS up to U.S. $256.1 million of non-recourse project financing, which will support final engineering, construction and startup costs in combination with PNGTS partners’ equity. PNGTS received regulatory approval in September and will begin transporting 178,000 MMBtu/day of gas on behalf of seven shippers in November.

Calpine Corp. acquired the remaining 55% interest in and assumed operations and management of the Bethpage Power Plant (formerly the Grumman Power Plant) on Long Island, NY. Bethpage is a 57 MW gas-fired cogeneration power plant that sells electricity and steam to Northrop Grumman and electricity to Long Island Lighting Co. under long-term agreements. Calpine purchased the remaining interest in the plant for $5 million from affiliates of U.S. Generating Co., SMO Bethpage, Inc. and Consolidated Natural Gas. “The Bethpage acquisition solidifies our strategic expansion into the high-priced Northeast power market,” said Calpine’s Vice President John King. In less than a year, the company has acquired a net interest of 760 MW in eight natural gas-fired power plants in four states.

Texaco announced it replaced 167% of its 1997 worldwide combined oil and gas production, excluding reserves added from the acquisition of Monterey Resources and various sales. The Monterey acquisition, completed in November 1997, added an additional 420 million barrels of oil equivalent (BOE) to Texaco’s proved reserve base. Proved oil and gas reserves for Texaco, including equity reserves in affiliates, increased 16% in 1997, and are at the highest level since the late 1980s. At year-end 1997, Texaco had 4.3 billion boe of net proved reserves, consisting of 3.3 billion bbl of liquids and 6.2 Tcf of natural gas. The estimated life of Texaco’s reserves is now 9.4 years compared to 8.6 years at year-end 1996. Excluding purchases and sales, the U.S. reserve replacement ratio in 1997 was 132%. U.S. finding and development costs were $5.37/boe. Texaco said 68% of the reserve additions were from new fields, new sands, and enhanced recoveries and extensions, primarily in the U.S. Gulf of Mexico and the U.K. North Sea. Major upward reserve revisions were recognized in the U.S. Kern River Field.

The Conectiv/CNE Energy Services LLC joint venture and Berkshire Energy Marketing, a division of the Berkshire Gas, have formed an alliance to sell energy commodities and services to commercial and industrial customers in western Massachusetts, eastern New York and southern Vermont. The companies plan to offer customers gas, electricity, fuel oil, and energy service products. Conectiv/CNE Energy also has formed regional alliances with Energy North in New Hampshire, Valley Resources in Rhode Island, Standard Oil of Connecticut and Kasden Fuel. Conectiv/CNE Energy is a joint venture of CNE Energy Services Group, Inc., and Conectiv, an energy company created by a proposed merger between Delmarva Power and Atlantic Energy. The Berkshire Gas Company is an investor owned natural gas utility which serves customers in 19 communities in western Massachusetts and operates a retail propane division serving more than 100 communities in Massachusetts, New York and Vermont.

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