DTE Energy and MCN Energy said they are making progress with theFederal Trade Commission (FTC) on their proposed merger, but nowexpect the regulatory hold-up to delay completion of the mergerpast the end of the year. “While we are aggressively working toclose this deal in 2000, despite our efforts, as each day passes itappears less likely that this transaction will close by year-end,”said DTE CEO Anthony F. Earley. The FTC raised concerns aboutcogeneration load and other gas/electric displacement technologiesin the companies’ coincident retail distribution areas, but thecompanies have taken action to address the issue by agreeing tosell a portion of MCN’s gas distribution capacity to a unit ofExelon (previously Unicom). “The proposed capacity sale to a unitof Exelon created a framework for productive discussions with theFTC,” said Earley. “It is our view that we have narrowed thosediscussions to a few issues related to the Exelon agreement and Iam hopeful these can be resolved soon.” The capacity sale agreementis subject to Michigan Public Service Commission (MPSC) review. “Weexpect to work the regulatory reviews simultaneously and will seekapproval from the MPSC as progress is made with the FTC,” Earleysaid. In the meantime, the two companies continue to refine theirintegration plans to allow for a rapid integration of overlapfunctions. They expect to save $1 billion in corporate synergiesfollowing completion of the $4.6 billion merger (including debtassumption). DTE’s principal operating subsidiary is DetroitEdison, an electric utility serving 2.1 million customers inSoutheastern Michigan. MCN’s largest subsidiary is MichiganConsolidated Gas, a gas utility serving 1.2 million customersthroughout Michigan.

Alliant Energy announced its subsidiary Alliant Energy Resources(AER) has formed a strategic partnership with Internet-basedservice provider SmartEnergy in an effort to begin developingstrategic partnerships with “e-focused businesses with significantcompetitive advantages within their respective markets.” As partof the agreement, AER will make a financial investment inSmartEnergy and add Frank Greb, its director of mass-marketdevelopment to SmartEnergy’s board of directors. AER plans tosupport the Internet-based company’s web-enabling technologies asit implements them in other regions in the energy industry.Currently, SmartEnergy provides electricity and natural gas serviceto the five boroughs of New York City, and Westchester County, NY.The company hopes to expand into as many as five states by theyear’s end.

TECO Energy’s power services subsidiary announced its intentionto buy GenPower’s interests in two independent natural gas-firedpower projects with a combined total of 1,200 MW under developmentin Arkansas and Mississippi. TECO Power Services (TPS) expects toinvest approximately $330 million. The company said the projectsknown as McAdams and Dell will be interconnected with the Entergytransmission system to market electricity to wholesale customers inArkansas, Louisiana, Mississippi, Alabama, Georgia, Tennessee andKentucky. They are expected to be in operation during the secondhalf of 2002. TPS has ownership interests in almost 3,200 MW ofoperating and under construction power worldwide. TECO Energy alsoannounced that former Chase Manhattan Executive William D. Rockfordhas been named to its board of directors. Rockford specialized inglobal project finance and the power industry for 28 years.

Cinergy Corp. announced that it is setting a target for averageannual earnings growth of 7-8% over the next three years. “As ourindustry is evolving more clearly toward regulated markets and newmarkets, we are focusing on strategies that will be successful inthe marketplace of the future,” said CEO James Rogers.

Houston Energy Association’s (HEA) members have approved amerger plan with the National Energy Services Association (NESA) ina vote taken at the group’s annual meeting. The approval will allowfor the merger to be complete and operational as one company onJan. 1, 2001. The combined company will be Houston-based andcomprised of people in energy related professions such as naturalgas transportation and trading, electricity generation,transmission and trading and related financial services. NESA/HEAprimary task is to maintain a forum for professional educationalprograms and networking among members.

Reliant Energy entered into a 32-year naming rights agreementfor Houston’s new state-of-the-art football stadium and the sports,entertainment and convention complex currently known as theAstrodomain Complex. The deal covers five buildings in all. WithinReliant Park there will be Reliant Stadium, Reliant Astrodome,Reliant Arena, Reliant Hall and Reliant Center. The park will behome to the Houston Livestock Show and Rodeo as well as the NFL’sHouston Texans. The Texans will host their first preseason game inAugust of 2002. Although the company refused to comment on the costof the naming deal, an article in the Houston Chronicle put theprice at $300 million. That exceeds the previous high for a namingdeal of $205 million over 27 years. FedEx paid that to name theWashington Redskins’ stadium Field.

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