Affiliated

Like its affiliated Sempra Energy utility in California, San Diego Gas & Electric Co. (SDG&E) announced Tuesday that it has up to $40 million in rebates and incentives for businesses investing in various energy efficiency projects this year. SDG&E made the announcement at an annual energy meeting drawing about 1,200 business representatives in San Diego.

Affiliated pipelines Texas Eastern and Algonquin cited impending cold weather and high demand in saying they will restrict nominations creating due-pipe imbalances and resolving due-shipper imbalances starting Sunday until further notice. The restrictions will be enforced “regardless of the shipper’s cumulative imbalance,” the pipes said.

The Missouri Public Service Commission (PSC) said Thursday it will pursue penalties against Missouri Pipeline Co. (MPC) and Missouri Gas Co. (MGC) for alleged price discrimination and assisting an affiliated company in gaining a competitive advantage over other energy marketers in violation of PSC regulations and their own tariffs.

Demonstrating that global warming is also a natural gas utility concern, Sempra Energy’s Southern California Gas Co. Tuesday said it has followed an affiliated utility in successfully certifying its 2005 greenhouse gas (GHG) emissions inventory with the California Climate Action Registry, gaining designation as a “Climate Action Leader.” Sempra’s other California utility, San Diego Gas and Electric Co., gained similar status earlier in March.

Citing the need to schedule operations to meet all customer requirements during cold weather, affiliated pipelines Trunkline and Panhandle Eastern issued similar Operational Alerts Wednesday that will be in effect until further notice. Panhandle said hourly deliveries under Rate Schedules EFT, EIT and SCT will be limited during any hour of the gas day to 1/16th of the total daily volume nominated at the delivery point. In addition, Rate Schedules FT and IT limit flow during any hour to 1/24th of the daily nominated volume. Trunkline applied the 1/16th limit to customers under Rate Schedule EFT and the 1/24th limit to customers under Rate Schedules FT, SST, QNT and IT.

Dallas-based EXCO Resources Inc., which went public earlier this year, has completed its acquisition of Winchester Energy Co. Ltd. and its affiliated entities from Progress Energy Inc. for $1.16 billion. The purchase, announced in July (see Daily GPI, July 25), gives EXCO about 400 Bcfe in proved natural gas reserves, bringing its total proved reserves to 1.3 Tcfe. The purchase also included 330 Bcfe in probable and possible reserves in East Texas and North Louisiana and current production of 75 MMcfe/d from 588 producing wells in the Cotton Valley, Hosston and Travis Peak trends. In addition, it included about 775 drilling locations, 106,000 net acres of leasehold, six gathering systems with 300 miles of pipe and a 54-mile, 16-inch diameter transmission line with throughput of 115 MMcf/d, 35% of which is company owned.

With its affiliated natural gas operations as the primary beneficiaries, Sempra Generation announced Tuesday it completed the sale of its exploration and production (E&P) subsidiary, Sempra Energy Production Co. (SEPCO), to PEC Minerals LP for approximately $225 million in cash. The company said it expected to record an after-tax gain of about $110 million from the sale in the third-quarter as part of discontinued operations.

Chesapeake Energy Corp. moved in on Appalachia Wednesday, announcing it had closed its previously announced acquisition of Columbia Natural Resources, LLC (CNR) and certain affiliated entities from Triana Energy Holdings, LLC, including producing properties, reserves and midstream assets. The purchase price was $2.95 billion, which consisted of $2.2 billion in cash and $0.75 billion in liabilities assumed at closing.

Petrohawk Energy Corp. closed a $425 million acquisition of Wynn-Crosby Energy Inc. and affiliated limited partnerships, which collectively hold about 200 Bcfe of proved reserves in the South Texas, East Texas, Permian, Arkoma and Midcontinent regions. The purchase brings Petrohawk’s total proved reserves to 233 Bcfe, 74% of which are natural gas. It average current production is 57 MMcfe/d. The company funded the transaction with proceeds from a $200 million private equity placement, $210 million in borrowings from its commercial bank group, and cash.