Calpine Corp. is planning to sell 400 MW on a fixed-price basisfor 30 months to Pacific Gas and Electric Co. in the firstbilateral electricity deal for a California utility sinceregulators agreed to allow such transactions in the wake of thesummer’s wholesale price and supply problems.
Basis
Articles from Basis
CA’s First Bilateral Power Deal Surfaces
Calpine Corp. is planning to sell 400 MW on a fixed-price basisfor 30 months to Pacific Gas and Electric Co. in the firstbilateral electricity deal for a California utility sinceregulators agreed to allow such transactions in the wake of thesummer’s wholesale price and supply problems.
Bid Caps Imposed in New York, New England
In an attempt to put a lid on price volatility this summer, FERCyesterday approved temporary bid caps of $1,000/MWh for the NewEngland and New York power generation markets, bringing the bidceilings for the entire Northeast and Mid-Atlantic regions intosync.
Oxy Replaces All 1999 Production
Occidental Petroleum Corp. said it replaced 100% of 1999worldwide oil and gas production on an equivalent barrel basis.Over the past five years, Occidental has replaced an average 171%of production. Occidental also said it lowered its finding anddevelopment costs by 65% since 1997, to $3.03 per barrel in 1999.
Industry Briefs
Chesapeake Energy Corp. of Oklahoma City, OK, fully exercised ona cash-less basis the common stock purchase warrant issued to itfrom Gothic Energy Corp. in March 1998 and had thereby acquired2,394,125 shares of Gothic common stock. Chesapeake now owns about13% of Gothic’s common stock. The warrant for 2,439,246 shares hadbeen issued to Chesapeake as part of a transaction involving theacquisition by Chesapeake of shares of Gothic’s senior redeemablepreferred stock, a 50% interest in Gothic’s Arkoma basin gas andoil properties and a 50% interest in substantially all of Gothic’sundeveloped acreage. The shares were issued pursuant to thecash-less exercise provisions of the warrant that permittedChesapeake to surrender the right to exercise the warrant inexchange for a number of shares (45,121) of Gothic common stock.
FERC to Hold Conference on ISOs
FERC has scheduled a public conference for April 15-16 toexamine the future of ISOs in administering the electrictransmission grid on a regional basis. The Commission isconsidering whether policy changes are necessary “in order topromote competition and reliability in bulk power markets.”