Energy Search Inc. has finalized an agreement with SouthernProducer Services LP, a subsidiary of Southern Energy Inc., toextend the funding of its capital expenditure program for 2001. Aspart of the agreement, Southern pre-approved 60 wells to be funded.Energy Search, based in Knoxville, TN, plans to drill 75 wells nextyear for about $11.5 million, primarily natural gas reserves in theAppalachian Basin. Energy Search CEO Charles P. Torrey said theagreement with Southern allows the company to “expand and expediteour aggressive drilling program.” He added that Southern had been”vital” to the company’s drilling schedule, and said he consideredSouthern’s commitment “a validation of our business developmentplan for the coming year.”

Avista Advantage, a subsidiary of Avista Corp. based in Spokane,WA, has added two capital firms, WS Investment Co. and CascadeInvestment LLC, to participate in the company’s private equityoffering. The investment would close the Series A investment roundled by EnerTech Capital Partners in November. Avista Advantage saidthe investments would be used to help refine, expand and market itsgrowing suite of facility-cost-management service offerings. Termsof the agreements were not disclosed.

The Texas Supreme Court heard final arguments last week fromPower Choice Inc., a small power marketer in the state, in itslawsuit challenging the rights of the state’s investor-ownedutilities to securitize their stranded costs. Power Choice ischallenging a state requirement that “retail electric customersshould bear the full excess cost over market (stranded costs) ofthe utility currently providing electric service, even if they nolonger receive electricity from the generating units with excesscost.” Power Choice filed a lawsuit earlier this year againstCentral Power & Light Co., arguing against a provision that theutility’s current ratepayers and any new customers that enter intoa utility’s geographic service area would have to service bonds torecover the stranded costs. The marketer is arguing that the bondswould serve no public purpose because they compel ratepayers to paybillions to the utilities over the next 15 years that are unrelatedto service provided during that time. CP&L argues that thestranded costs were incurred because of Texas sanctioned ratemakingprogress. CP&L says that Texas is responsible for ensuring thatthe money is paid back. A decision by the state’s high court isexpected by the end of the month.

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