Acquired

PP&L Resources Inc. announced that it acquired Penn FuelGas, a gas distributor and storage company, in a stock transactionvalued at $133 million. The purchase was the latest step by theutility company to diversify its portfolio of energy products andservices, said PP&L Resources President William F. Hecht.

Dynegy Canada Inc., a subsidiary of Houston-based Dynegy Inc.,announced Friday it has acquired the midstream gas processingfacilities and gathering lines of Compton Petroleum Corp. for anestimated $39 million.

Williams took a bigger jump into the energy marketing businessyesterday by announcing it has acquired full ownership ofEnergyVision by purchasing the 50% interest in the company that washeld by BEC Energy. Terms of the transaction were not disclosed.

Independent power producer Calpine Corp. acquired Dow Chemical’s70 MW gas-fired power plant at Dow’s Pittsburg, CA, chemicalfacility for about $13 million. The deal includes Dow’s gaspipeline system that provides the plant with low-cost fuel fromSacramento basin gas fields. Key to the transaction is Calpine’splan to build a 500 to 700 MW gas-fired power plant adjacent toDow’s Pittsburg chemical plant. The new power plant will requirecapital of $250 million to $350 million and will generate enoughelectricity to power half a million households. The existing plantuses 16,000 MMBtu/d, and the new plant will use 80,000 to 90,000MMBtu/d.

KN Energy made a decision to discontinue its mc2 retail energymarketing unit, which was acquired when KN purchased MidCon Corp.earlier this year. KN said mc2’s business strategy clashed withthat of KN Services and en-able, KN’s retail energy marketing andservices joint venture with PacifiCorp.

In a transaction making it the largest independent powerproducer in Texas, Calpine Corp. acquired the remaining 50% interest in Texas Cogeneration Co. (TCC), owner of two gas-firedpower plants in Texas City and Pasadena, TX, with 827 MW ofcapacity. Calpine of San Jose, CA, bought the remaining interest inTCC from Dominion Cogen Inc. for about $53 million, plus contingentpurchase payments beginning in 2000 that could approximate 2.9% ofproject revenue. As part of the deal, Calpine now owns a 7.5%interest in a 165 MW gas-fired cogeneration plant located inBayonne, NJ. Calpine Fuels Texas, a subsidiary of Calpine, buys gasfor the Texas plants from Enron Capital & Trade Resources(ECT). In a related transaction, Calpine Fuels Texas paid about$105 million to ECT to restructure its existing gas contracts.

CMS Energy’s CMS Marketing, Services and Trading (CMS-MST) hasacquired 50% of North Carolina-based energy marketer Enline EnergySolutions.

Texas Utilities Co. Tuesday acquired 72,560,178 Energy GroupShares at 840 pence/share, representing about 13.9% of The EnergyGroup’s issued share capital. The 840 pence/share offer was thelatest in the bidding war between TXU and PacifiCorp for theBritish Utility.