After engaging in a Northeast LDC eating binge last year, EnergyEast Corp. started the digestion phase of its strategy yesterday byannouncing the completion of its Connecticut Energy purchase. Thetransaction gives Energy East control over Southern Connecticut GasCo., an LDC serving 160,000 customers. The original purchase offerwas made last April for $617 million. Energy East (formerly knownas NYSEG) still has a full plate, however, as its transactions withCTG Resources, CMP Energy and Berkshire Energy are still beingprocessed. Following the completion of all the acquisitions, EnergyEast will have more than 1.3 million electric customers and morethan 542,000 gas customers, excluding any added through CMP NaturalGas, the Maine gas distribution partnership of Energy East and CMP.With CTG and Connecticut Energy, Energy East becomes the largestgas distributor in the state with about 300,000 customers.

Calpine and Bechtel received approval from the California EnergyCommission (CEC) for their Delta Energy Center in Pittsburg, CA.The $450 million, gas-fired power plant will generate 880 MW forthe greater Bay Area in mid-2002 “in time to help offsetanticipated system strains in northern California,” the companiessaid in a statement. Calpine and Bechtel filed the application withthe CEC in December 1998. “Delta Energy Center will help stemprojected electrical supply shortfalls and help modernizeCalifornia’s aging and constrained electric power infrastructure,”said Bob Hepple, Calpine vice president of project development anddirector of projects for the Calpine/Bechtel Bay Area powerprogram. “In addition, it will provide Californians withsignificant environmental and cost saving benefits.” Bechtel willbuild the plant and Calpine will operate it. Construction isscheduled to begin in June. The facility will provide electricityand steam for use at the nearby Dow Chemical facility and will alsopower homes and businesses throughout Pittsburg and the greater BayArea.

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