Denver-based Prima Energy Corp., an independent natural gas and oil company, has adopted a Stockholder Rights Plan designed to provide additional negotiating leverage to the company’s board of directors in the event of an unsolicited takeover bid, and to protect the company’s stockholders against inadequate offers and “abusive takeover tactics.” Under the plan, the company will distribute one right for each outstanding share of common stock to holders of record at the close of business on June 8. The plan would generally be triggered if an acquiring party accumulated 15% or more of the company’s common stock. Most of the company’s current activities are focused in the Rocky Mountains.

TransCanada PipeLines Limited and PetroCanada today announced an agreement to build the MacKay River Cogeneration Project, a 165 MW natural gas-fired cogeneration power plant near Fort McMurray, Alberta. The facility will be developed and owned by TransCanada. The company said it will provide electric power and steam to Petro-Canada’s MacKay River in-situ oil sands project, located 45 kilometres northwest of Fort McMurray. The power plant will be operated as part of the MacKay River development. Ten MW of power will be provided to the MacKay River site and an additional 60 MW will be sold under long-term contracts. Surplus power of approximately 95 MW is expected to be supplied to the Power Pool of Alberta. “Power is one of our two core businesses and Alberta is one of our core markets,” said Hal Kvisle, TransCanada’s CEO. “The MacKay River plant marks a milestone for our power business in the province. It will be our largest power plant in Alberta so far and will increase the total amount of power managed or controlled by TransCanada in the province to nearly 1000 megawatts. An equal amount of power can meet the needs of approximately one million average households. TransCanada said the capital cost of the MacKay River power plant is estimated at $135 million. Construction of the facility is anticipated to begin this fall, pending regulatory approvals. It is expected the plant will be in service no later than 2004, with the possibility of an earlier in-service date.

To support its worldwide business plan, Mirant, based in Atlanta, has begun a private offering of $750 million in convertible debentures due in 2021. The debentures will carry an annual interest rate of 2.5% and will be issued under Rule 144A. The debentures will be convertible into shares of Mirant common stock at a price of $67.95 per share if the closing price of Mirant common stock on the New York Stock Exchange exceeds certain levels for a specific time period or in certain other circumstances. The conversion premium would be 51% over the company’s closing price of $45 on May 23. Debenture holders may put the notes back to Mirant at the end of the third, fifth, 10th and 15th years. The initial purchaser would have the option to purchase an additional 15% more for up to 30 days. Mirant develops, constructs, owns and operates power plants and sells wholesale electricity, natural gas and other energy commodities.

DTE Energy Co. reported on Thursday that the Securities and Exchange Commission (SEC) has approved its merger with MCN Energy Group. DTE Energy and MCN announced a May 31 closing date for the merger on Wednesday in the hopes of moving the SEC to rule (see Daily GPI, May 24). The May 31 closing date at 9 a.m. is the deadline for MCN shareholders to properly complete, sign and return all of the materials necessary to make an effective election with respect to their MCN common stock. DTE said if the exchange agent does not receive the proper materials before the election deadline, such shares will be treated as if no election were made with respect to them.

Duke Energy North America (DENA) today announced an agreement with OpenLink Energy to replace its internal trading and risk management systems with OpenLink’s Endur(TM). Duke Energy said it will use Endur to enhance its energy commodities and emissions trading, risk management and accounting capabilities. “OpenLink will provide Duke Energy with the front-through-back-office solutions necessary to manage our energy trading, risk management and operational requirements,” said Terry Aschbacher, DENA vice president of commercial technology. “Replacing multiple internal systems with Endur will provide DENA with sophisticated tools to manage its profitability in the emerging electronic trading market, while presenting the entire organization with the opportunity to centralize its risk analysis.” OpenLink said Endur helps to manage energy trading, risk management, and back-office functions in a tightly integrated fashion, channeling not only information but “intelligence” into a steady stream for precise decision-making, with real-time accuracy, configurability, flexibility and scalability. Endur will also provides comprehensive trading and risk management support for a wide range of markets such as coal, soft commodities, metals, currency, interest rates, emissions, weather derivatives and bandwidth.

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