TransCanada PipeLines Ltd., through its wholly-owned subsidiary,TransCanada OSP Holdings Ltd., reported last week 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.TransCanada PowerL.P. owns a total of six power plants in Ontario, British Columbiaand New York State, with a seventh plant nearing completion.

With transmission grids struggling with each new summer heatwave, an aspiring California-based company pushing off-gridmicroturbines, Capstone Turbine Corp., launched a success initialpublic offering (IPO) last Thursday, raising $130 million, andclosing the first day of trading at almost $48/share, three timesthe initial asking price of $16. (Friday’s close was $45-1/16 afterhitting a high for the day of $49-plus.) The 156-employee companyfounded in 1988 to create cleaner motor vehicles has yet to show aprofit, having lost $29 million last year, but has a commerciallyavailable, extremely versatile microturbine that runs on everythingfrom natural gas to sour gas in petroleum production fields.Capstone generated revenues of$6.69 million last year whilewithstanding its biggest loss ever. The company plans to use theIPO proceeds for capital tooling and manufacturing equipment,expanding its sales/marketing efforts, continuing productdevelopment and payment to one of its major backers, NewZealand-based Fletcher Challenge Ltd.

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