Attempt

Marketers are making a last-ditch attempt at establishing abeachhead for fair and open competition in the retail energy marketin Massachusetts. They lost a battle earlier this year whenregulators voted to allow utilities to assign portions of upstreamgas transportation and storage capacity to customers who wereseeking alternative suppliers. Marketers now hope they can persuaderegulators to establish a set of minimum standards for utilitytransportation service, not only for the retail customer, but alsofor the new utility customer, i.e., the retail marketer, as well.

Marketers are making a last-ditch attempt at establishing abeachhead for fair and open competition in the retail energy marketin Massachusetts. They lost a battle earlier this year whenregulators voted to allow utilities to assign portions of upstreamgas transportation and storage capacity to customers who wereseeking alternative suppliers. Marketers now hope they can persuaderegulators to establish a set of minimum standards for utilitytransportation service, not only for the retail customer, but alsofor the new utility customer, i.e., the retail marketer, as well.

Cross Timbers Oil Co. executed a series of acquisitions, salesand closings last week in an attempt to tidy its portfolio andreduce debt. Through all the activity, the Texas-based producergained full control of Oklahoma City-based Spring Holdings Co. andclosed a previously announced $231 million deal with Ocean Energy.Cross Timbers said the net result of all this activity was anincreased reserve base, without deviation from its debt reductionplan.

Neither the interstate pipelines nor gas producers wereparticularly enamored of FERC’s latest attempt to create a morebalanced, lighter-handed system for regulating gas pipelines on theOuter Continental Shelf (OCS). They both agree the Commission fellshort of its goal in the July proposed rulemaking.

Neither the interstate pipelines nor gas producers wereparticularly enamored with FERC’s latest attempt to create a morebalanced, lighter-handed system for regulating gas pipelines on theOuter Continental Shelf (OCS). They both agree the Commission fellshort of its goal in the July proposed rulemaking.

Calpine Corp. offered $41 million in cash to purchaseHouston-based Sheridan Energy yesterday in an attempt to add amajor gas exploration and production arm to its extensive powergeneration assets. The offer breaks down to a $5.50 per shareproposal for Sheridan’s common stock. The tender offer is expectedto be completed in September of this year.

In an attempt to win approval for their merger from regulatorsin Washington State, ScottishPower and PacifiCorp announced theyhave agreed to give retail electric customers in the state a mergercredit directly payable on customers’ bills of $3 million per yearfor four years beginning in January 2001. The deal is similar tothe those already offered to PacifiCorp customers in Oregon andIdaho. The merger credit, which equates to a reduction of 1.7% offcustomers’ bills, includes Washington’s share of the $10 millioncost savings that ScottishPower had previously committed to passthrough to customers in the state. The merger partners will be ableto offset the $3 million merger credit in each of the four years tothe extent that the cost reductions are reflected in rates. Theproposed marriage requires the approval of regulators in the fivewestern states served by PacifiCorp – Washington, California, Utah,Idaho, Wyoming and Oregon. All have either approved the transactionor have recommended it for approval by their respectivecommissions. It also has passed muster at FERC and the Securitiesand Exchange Commission, but still awaits clearance by the NuclearRegulatory Commission.

In an attempt to better support record-breaking power demand inthe Midwest, OG&E Electric Services (OG&E), an OGE Corp.subsidiary, said yesterday it plans to reactivate two powergenerators at its Mustang Power Plant. The utility is alsoconsidering other enhancement projects, with a goal to add 1,000 MWto its power supply system.

In an attempt to expand its Gulf Coast influence, MidcoastEnergy Resources Inc. purchased Southern Industrial Gas Corp.(SIGCO), a Gulf Coast distributor, Tuesday. Terms of thetransaction were not disclosed.