KeySpan Corp. and Consolidated Edison have canceled plans tobuild a gas-fired power plant in Brooklyn. The companies said theywill not follow through on an option to buy the Waterfront site onwhich the 500 MW plant was to be developed. A spokesman said theproject had become uneconomic because of a recent ruling by the NewYork State Department of Environmental Conservation on anotherpower project located along the Waterfront. The ruling restrictedthe amount of river water that could be used for cooling.Construction cost estimates also were higher than first expected.KeySpan and ConEd had planned to build the plant on the East Riverin Brooklyn to supply the power-hungry New York City market, whichremains about 300 MW shy of a requirement to have 80% of the city’spower supply generated within city boundaries. KeySpan intends tomove forward with its plans to add 250 MW of gas-fired power to its2,100 MW Ravenswood power facility. That expansion is expected tobe in service by summer 2003.

Laclede Gas of St. Louis has filed a request with the MissouriPublic Service Commission to make an unscheduled summer PurchasedGas Adjustment (PGA). If the commission Ok’s the request, theadjustment would affect 630,000 customers. The rise in natural gasprices has boosted Laclede’s cost of gas above its receipts fromcustomers for gas services by $100,000 a day. If this winter iscolder than last year’s mild season, and gas prices stay where theyare, then Laclede’s customers could be facing significantly higherbills. Laclede has assured its customers that it has an adequatesupply of natural gas this winter, and will not be affected by thenation’s lower than normal storage level. If passed by thecommission, as of July 15, the average residential customer wouldspend an extra $4.97 per month for the remainder of the summer.

Toreador Resources reached an agreement in principle to purchaseTexona Petroleum, a privately held Houston-based oil and gasexploration and production company. Texona’s properties are mostlyworking interest sites located in 12 states, but concentrated inLA, OK, and TX. Toreador will trade share for share with Texona upto a maximum of 1.1 million shares. A tentative close date is setfor Aug. 1, but the two companies must first reach a mutuallyacceptable agreement and settle on all of the conditions. The newlyacquired reserves would add approximately 5,529 MMcf and 431,000barrels. About 68% of the reserves are natural gas.

Weiss & Yourman has a class action lawsuit in the UnitedStates District Court for the Eastern District of New York againstAmerican Electric Power Co. and its senior executives, seeking torecover damages on behalf of defrauded investors who purchasedAmerican Electric securities between July 25, 1997 and July 27,1999. The complaint charges defendants with violations of theantifraud provisions of the Securities Exchange Act of 1934 andRule 10b-5. The complaint alleges that defendants issued a seriesof false and misleading statements and concealed material factscausing the plaintiff and other members of the Class to purchaseAmerican Electric securities at artificially inflated prices duringthe period.

Williams said it completed its purchase of a 3% stake in theTrans Alaska [oil] Pipeline System from Mobil Alaska Pipeline Co.Terms of the sale were not disclosed. “This ownership position inthe Trans Alaska Pipeline will not only add to our existingpresence in Alaska, but we expect this purchase to be immediatelyaccretive to earnings,” said Ralph Hill, senior vice president andgeneral manager of petroleum services and exploration andproduction for Williams. “Further, we believe that it strategicallypositions us to participate in the transportation of futurehydrocarbons developed on the North Slope.” Williams’ presence inAlaska currently includes a petroleum refinery in the North Polethat receives crude oil from Trans Alaska, a distribution terminalat the Port of Anchorage, 28 retail petroleum convenience storesand an interest in an air cargo transfer facility at AnchorageInternational Airport. Trans Alaska is one of the largest pipelinesystems in the world, transporting 1 million barrels per day ofcrude oil 800 miles from Prudhoe Bay on the state’s North Slope tothe Port of Valdez in the south. The pipeline was built between1974 to 1977 at a cost of $8 billion.

Houston-based Apache Corp. has completed its acquisition of long-lived producing properties in the Permian Basin and South Texas from Collins & Ware for $320.3 million. The assets have proved reserves of approximately 496 Bcfe, of which one third is liquid hydrocarbons. Probable reserves are estimated at 151 Bcfe. Current net production is nearly 40 MMcf/d natural gas and 4,000 barrels of liquid hydrocarbons a day. The properties have nearly 214,000 net acres, and 153,000 of them are undeveloped. The assets also include nearly 1,928 square miles of 3-D seismic data. The transaction first announced in June (see Daily GPI, June 15).

University Park Energy LLC, an affiliate of Constellation PowerSource, announced that site clearing has begun for a $130 millionpower plant located in University Park, 30 miles south of Chicago.The 300 MW plant, with 12 Pratt and Whitney natural gas-firedcombustion turbines, will be in full operations by the summer of2001.

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