ANR Pipeline signed agreements with Wisconsin Public ServiceCorp. (WPSC) that will result in the extension to 2010 of firmnatural gas transportation and storage service agreements that werescheduled to expire over the next three years. “These contractextensions reinforce the strong relationship that Wisconsin PublicService and ANR have shared for many years,” said Jeffrey A.Connelly, president and CEO of ANR and senior vice president,natural gas, of parent Coastal Corp. “Wisconsin Public Service isconfident these contracts will continue to provide our customerswith reliable natural gas service at competitive rates into thenext millennium,” said Patrick D. Schrickel, president and chiefoperating officer of Wisconsin Public Service Corporation. Theagreements are subject to regulatory approvals. WPSC is acombination gas and electric utility serving about 225,000 gascustomers and 380,000 electric customers in an 11,000-square-mileservice territory in Wisconsin and upper Michigan.

Columbia Energy Group said yesterday its Columbia EnergyServices (CES) unit is close to completing an evaluation of offersfor its wholesale and energy trading operations, but the bids camein much lower than expected – $13 million (16 cents/share) lower tobe exact. Columbia said it was forced to more than double the netloss from discontinued operations in its third quarter earnings to$23.5 million from the $10.5 million reported late last month. It’srevised third quarter earnings show a $22.7 million net loss($0.28/share) including discontinued operations. It previously hadreported only a $9.7 million net loss ($0.12/share). The sale stillis expected to occur before the end of the first quarter of 2000,the company said.

Louis Dreyfus Natural Gas Corp. agreed to terminate afixed-price gas contract for $44 million. The contract was for thecompany to sell 6 Bcf/year through 2007 to an independent powerproducer that delivered electricity to Niagara Mohawk Power Corp.Closing is expected later this month. Gas covered by this contractwill be available for sale into other markets at prevailing prices.The termination amount is about equal to the carrying amount of thecontract at Sept. 30, 1999, and consequently there will be nomaterial impact to earnings or stockholders’ equity in the fourthquarter of 1999. The Oklahoma City, OK, company has followed hedgeaccounting for this contract, and accordingly, in future periodsthe termination payment will be amortized into gas revenues overthe original contract term. Termination proceeds will be used toreduce outstanding debt.

AmerenCIPS locked in a power supply deal with Archer DanielsMidland, Illinois’ largest electricity user, yesterday. The utilitywill be the company’s sole power supplier for the internationalgiant’s Decatur, Ill.-based world headquarters and the nation’slargest corn, soybean and bioproducts processing facility. In earlyAugust of 2000, ADM will become a 300 MW load customer ofAmerenCIPS and the power it buys merely complements its ownelectricity from an on-site co-generation facility. Terms of thecontract were not disclosed. “The addition of ADM to our customerbase underscores AmerenCIPS’ ability to compete in an intenselycompetitive market,” said Gary L. Rainwater, president and CEO ofAmerenCIPS.

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