Affiliate

Avista Corp.’s Internet specialty billing and informationservices affiliate, Avista Advantage, and Reliant Energy havereached a product distribution agreement.

Citing a restructuring plan formulated to deal with poor 1998earnings, Aquila Energy’s Aquila Gas Pipeline Corp. (AQP)announced Tuesday it will cut 60 people from its staff of 310. Thecuts will inflict a $1.7 million pre tax charge on the company’searnings.

Evergreen Resources, Inc. announced Thursday the acquisition of41,000 gross Raton Basin acres from Infinity Inc. affiliate, CISOil and Gas, for $8.5 million. Evergreen estimates this additionwill increase its coal-bed methane proved net gas reserves by 22.5Bcf. The company now holds working majority interest in 200,000acres in the basin. The effective date of the transaction was Dec.31, 1998.

Shell Oil affiliate Tejas Natural Gas Liquids LLC and EnterpriseProducts Partners L.P. have formed joint venture Entell NGLServices LLC to develop a gas liquids transportation anddistribution system. Entell’s initial asset base will includesubstantially all of Enterprise’s existing pipeline facilities inLouisiana. In addition, Entell will create a pipeline systemlinking storage at Breaux Bridge, LA, to Mont Belvieu, TX. Entellanticipates the system being capable of distributing products fromkey NGL sources in southern Louisiana directly to major NGLmarkets, including the lower Mississippi River corridor, Dixiepipeline, Lake Charles, LA, and Mont Belvieu.

Duquesne Light affiliate Duquesne Enterprises and North AmericanPower Brokers are giving Pittsburgh’s retail energy customers a newway to reach up to 50 alternative energy suppliers. With the clickof a mouse button, industrial, commercial and residential customersnow can consummate gas and power transactions. The Internet-basedsystem, called the World Wide Retail Energy Exchange (REX), workssomething like a dating service for the two sides of energyindustry transactions. It also can provide a sponsoring LDC withvaluable back-office information and an advertising opportunity.

Washington Water Power’s (WWP) energy marketing affiliate,Avista Energy, embarked on a two-day expansion spree last week byacquiring Vitol Gas and Electric Co. and Coast Pacific ManagementCo., and in the process became a top-10 power marketer. Supportingthese additions is WWP’s joint venture with Cogentrix Energy Inc.,announced Dec. 11, to build or buy gas-fired electric generationprojects in the Pacific Northwest. Terms for deals were notdisclosed.

With San Juan Basin-Southern California border (bidweek) basisaveraging double what it was last year through November, 36cents/MMBtu compared with 18 cents, and rising, Dynegy’s $70million deal for 1.3 Bcf/d of El Paso Natural Gas’ firm pipelinecapacity is looking better all the time for the company, DynegyPresident Stephen Bergstrom said in an interview with NGI.

Calpine Corp. power marketing affiliate Calpine Power Servicessigned a one-year sales agreement with LG&E Energy Marketing(LG&E) to provide 150 MW from Calpine’s Texas power systembeginning January 1999. Calpine’s Pasadena Power Plant will provide140 MW of electricity, with the additional 10 MW coming from thecompany’s Texas City and Clear Lake facilities. With thisagreement, Calpine has now sold all of the power from its existingPasadena facility through 2001.

Nuevo Energy Co. agreed to sell its East Texas gas assets for$190.6 million to an affiliate of Samson Resources Co. The EastTexas assets accounted for about 275 Bcfe of Nuevo’s Jan. 1 provedreserves. The properties are long-lived reserves located mainly inthe Oak Hill Field and interests in the Carthage, SE Carthage andChapel Hill fields, as well as small interests and royaltyinterests in additional East Texas fields.