Announced

Hoping to relieve stranded costs due to state deregulation,Montana Power Co. (MPC) announced Tuesday that its MPC Natural GasFunding Trust issued $62.7 million worth of asset-backed transitionbonds in a private placement. There was a 6.2% coupon on the bondsissued. The utility said proceeds from these bonds will be used toreduce its outstanding debt and equity.

Westcoast Energy announced plans to buy an additional 9.1% shareof the now-approved Alliance Pipeline Project from Unocal Corp.,which indicated its interest in selling the share earlier this yearas part of a corporate restructuring. The purchase will increaseWestcoast’s total interest in the project to 23.6% from 14.5%.Westcoast’s total equity in the project is now about $500 million.The sale is scheduled to close by the end of December, subject tothe completion of formal agreements.

In a move similar to those of its peers, Chevron Corp. announcedit would cut expenses by $500 million next year, including someunspecified staff reductions, and spend about $5.1 billion, 8% lessthan was spent in 1998. Cuts in 1999 capital spending will beaccomplished primarily in the company’s mature North AmericanE&ampP business, as well as in refining and marketing and inchemicals.

Alberta Energy Company (AEC) announced plans to expand thestorage capacity managed by its AECO-C storage hub in Alberta by 10Bcf through a conversion of a depleted field at Peace River Arch innorthwestern Alberta to a commercial storage facility. Thedevelopment will add 100 MMcf/d of injection and withdrawalcapability and has the potential for a further expansion, AEC said.

Devon Energy Corp. and Canadian-based Northstar Energy Corp.completed their merger, which was announced June 29 (see NGI July6, 1998). Devon is issuing about 16.1 million common equivalentshares to the Northstar shareholders. In addition, Devon isassuming US$312 million in existing Northstar debt.

Amerada Hess Corp. announced it will be chopping capitalexpenditures by $900 million next year from the $1.45 billion spentthis year. It also plans to reduce its exploration and productionwork force by 400 positions, a 20% reduction in the U.S. and theU.K., resulting in $18 million in annual savings after taxes.

ComEd announced it plans to sell the Collins generating stationand the company’s peaking units in conjunction with the sale of itscoal-fired generation business. The company said it received anumber of attractive proposals for all the power plants during thefirst phase of its coal plant auction. A “short list'” of qualifiedbidders on all the plants is being compiled for the next phase.

TEPPCO Partners, L.P. has announced the completion of itsacquisition of the oil and natural gas liquids (NGL) pipelinesbusiness of Duke Energy Transport and Trading Company (DETTCO) fromthe parent, Duke Energy.

The New York Public Service Commission released the text of itspreviously announced gas unbundling policy statement, laying outits plan to force the state’s LDCs out of the merchant functionwithin three to seven years (see NGI Oct. 12, 1998) and endmandatory capacity assignment by next April. But it can expectstrong opposition from a number of New York LDCs who aren’t willingto give up gas sales and who say capacity assignment is areasonable way to recover stranded costs.