Agreement

Equitable Resources signed a definitive agreement to buyCarnegie Natural Gas Co., a gas utility and USX-Marathon Groupsubsidiary serving 9,000 residential, commercial and industrialcustomers in Pennsylvania and West Virginia, for an undisclosed sumTuesday. The purchase increased Equitable’s natural gas throughput27% and increased its production in Appalachia 9%. The companieshope to close the deal late this year or early next year.

A House Commerce subcommittee hearing last week revealed thatlawmakers aren’t much closer to agreement on the tough,controversial issues associated with restructuring of the powerindustry than they were a year ago.

A House Commerce subcommittee hearing yesterday revealed thatlawmakers aren’t much closer to agreement on the tough,controversial issues associated with restructuring of the powerindustry than they were a year ago.

FPL Energy Inc., a subsidiary of FPL Group Inc. plans to build,own and operate a 700 MW gas-fired power plant in Bellingham, MA.FPL Energy signed a purchase agreement with Massachusetts-basedInfrastructure Development Co. (IDC) for the right to build theplant. IDC planned the project, has been working with localcommunities and the state to obtain regulatory approvals and willcontinue to assist FPL Energy with development. Information on theplant’s projected gas consumption was unavailable.

Tejon Ranch Co. signed an agreement with Enron Capital &Trade Resources Corp. to develop a power plant on its property atthe southernmost end of the San Joaquin Valley at the base of theTehachapi Mountains. The site is strategic because of the proximityof the California Aqueduct, existing major transmission lines, andthe Kern River-Mojave gas pipeline.

CMS Corp.’s marketing division, CMS Marketing, Services and Trading (MST), completed an agreement last Tuesday to purchase a total of 9.3 Bcf of liquefied natural gas (LNG) from the North West Shelf LNG project in Australia for delivery to the CMS Trunkline LNG facility in Lake Charles, LA. Terms of the transaction were not disclosed.

CMS Corp.’s marketing division, CMS Marketing, Services and Trading (MST), completed an agreement Tuesday to purchase a total of 9.3 Bcf of liquefied natural gas (LNG) from the North West Shelf LNG project in Australia for delivery to the CMS Trunkline LNG facility in Lake Charles, LA. Terms of the transaction were not disclosed. The announcement marks the second major deal CMS has struck to take advantage of its purchase of Eastern Panhandle Pipeline and Trunkline Gas Co. from Duke Energy last year.

Dominion Resources Inc. of Richmond, VA, and a subsidiary ofPittsburgh-based Consolidated Natural Gas Co. signed an agreementto develop gas-fired power generation facilities along CNG’spipeline system. Dominion Resources and CNG power company willidentify and evaluate potential sites for development of facilitiesalong CNG’s natural gas pipeline network in Ohio, Pennsylvania, NewYork, West Virginia and Virginia. Dominion Resources and CNGaffiliates will develop, own, operate and maintain the facilitieson a 50-50 ownership basis.

Dynegy Inc. project affiliate Rockingham Power L.L.C. signed along-term gas interconnection agreement with Williams’ Transcopipeline. Williams’ interconnection will provide capacity for up to222 MMcf/d to fuel Dynegy’s proposed 800-megawatt (MW) generationfacility in Rockingham County, NC. Construction on theinterconnection is scheduled to be completed in December. “Naturalgas power generation is increasing and we look forward toadditional opportunities to expand our pipeline system to meet thisgrowing demand,” said Frank Ferazzi, vice president of customerservice and rates, Williams Gas Pipeline-Transco.