Attempting

Attempting to lower its energy costs, Washington-based PugetSound Energy announced yesterday an agreement to buy out theremainder of a large gas-supply contract from Cabot Oil & GasCo. for $12 million. As a result of this deal, Puget will becomethe supplier to its own 160 MW co-generation plant near Bellingham,WA, which it purchased earlier this year. Puget expects to reduceits gas costs by 5 to 15% annually for the duration of theremaining nine years of the contract.

Attempting to better accommodate the burgeoning Gulf Coast powerdemand, Entergy Corp. spent $1.9 billion to purchase 24 GE 7FAadvanced technology gas turbines and four steam turbines from GE,Entergy said yesterday. Delivery is scheduled through 2004. Theagreement includes turnkey installation of the 1,000 MW Freestonepower plant project and long-term service agreements (LTSAs) thatcover all scheduled maintenance for a period of 16 years followingthe start- up of each turbine.

Tennessee Gas Pipeline is violating the Negotiated Rates Policystatement in attempting to keep secret rollover agreements with twocustomers to extend capacity contracts for three to four yearsbeyond their November, 2000 expiration date, according to a protestfrom producer shippers. And the shippers fear there may be othersin the near future because much of Tennessee’s capacity is undercontracts expiring Nov. 1, 2000 which require notification a yearin advance of the deadline.

Tennessee Gas Pipeline is violating the Negotiated Rates Policystatement in attempting to keep secret rollover agreements with twocustomers to extend capacity contracts for three to four yearsbeyond their November, 2000 expiration date, according to a protestfrom producer shippers. And the shippers fear there may be othersin the near future because much of Tennessee’s capacity is undercontracts expiring Nov. 1, 2000 which require notification a yearin advance of the deadline.

Pacific Gas and Electric is attempting to block Denver-basedWestern Gas Resources’ plans for moving into a heavilyindustrialized part of the utility’s East San Francisco Bay serviceterritory by converting a proprietary gas pipeline to astate-regulated, open-access supply line serving proposed newmerchant power plants in Pittsburg, CA, along with surroundinglarge industrial loads.

Pacific Gas and Electric Co. is attempting to block Denver-basedWestern Gas Resources’ plans for moving into a heavilyindustrialized part of the utility’s East San Francisco Bay serviceterritory by converting a proprietary gas pipeline to astate-regulated, open-access supply line serving proposed newmerchant power plants in Pittsburg, CA, along with surroundinglarge industrial loads.

Attempting to meet steep generation acquisition goals set by itsCEO for 1999, El Paso Energy recently bought a 49% ownershipinterest in East Coast Power, a subsidiary of Enron Corp. Terms ofthe deal were not disclosed. Enron still maintains control of thecompany with its 51% interest. El Paso said this deal is the firstdomestic power alliance between the two companies.

Aggressively attempting to lower debt before its upcoming mergerwith Seagull Energy, Ocean Energy Inc. sold its Canadian oil andgas division Friday to Quintana Minerals Canada Corp. for $74million. OEI said shareholders for both companies are holdingspecial meetings March 30 to vote on the merger. If they vote infavor, the company will be officially merged that afternoon.

Attempting to gain access to a potentially plentiful Gulf ofMexico gas supply, KeySpan Exploration &amp Production announcedTuesday it agreed with Houston Exploration Co.to jointly drilland develop 55 leases in the Gulf’s outer continental shelf. The$300 million agreement has an effective date of Jan. 1, 1999.