Reliant Energy said yesterday that it expects earnings for thesecond quarter of 2000 to be considerably higher than the sameperiod last year and 15-20% higher than industry analysts’projections. In the second quarter of 1999, the company hadadjusted earnings of $123 million, or $0.43 per share. Increasedearnings from the company’s growing multi-regional generationportfolio combined with strong commercial management of theseassets and increased trading margins drove earnings beyondexpectations for the quarter. “Our strategy of building strongbusiness positions in selected regions of the U.S. allows us tocapitalize on the growth opportunities of different markets,” saidReliant CEO Steve Letbetter. The company plans to announce secondquarter earnings on July 27.

FERC earlier this week issued a certificate to Paiute Pipelineto begin construction of a $5.4 million looping/replacementpipeline on its Carson and South Tahoe laterals to serve theincreased winter gas loads of LDC affiliate Southwest-NorthernNevada. The facilities would enable Paiute to transport anadditional 10,800 Dth/d to its affiliate, both of which are ownedby Southwest Gas. The Commission said the project complied with thecriteria in its policy on new pipeline construction. Specifically,it noted that existing Paiute customers wouldn’t subsidize theproject since the pipeline intends to levy a rate surcharge onSouthwest-Northern Nevada to recover the costs of the pipelinelooping. Also, the Commission said Paiute could roll in the $1.98million in costs for the replacement facilities in its next ratecase.

TransCanada PipeLines Ltd., through its wholly-owned subsidiary,TransCanada OSP Holdings Ltd., reported yesterday it has purchasedan additional 29.9% interest in an Ocean State Power (OSP) plantfrom National Grid USA for an estimated $61 million, bringing itsfull ownership interest in the OSP facility to 100%. Thetransaction is expected to close by September, pending regulatoryapprovals. The 560 MW, combined-cycle plant, which is located inBurrville, RI, is considered one of the largest gas-firedfacilities in the Northeast region. It is fueled by 100 MMcf/d ofgas from western Canada. In addition to full ownership in the OSPplant, TransCanada announced last week that it plans to build twonew gas-fired co-generation plants in Alberta.

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