Becomes

Transco declared what a spokeswoman confirmed is its first OFO ever. The systemwide Imbalance Operational Flow Order becomes effective Saturday until further notice. Transco noted that on Monday it had issued a System Imbalance Notice advising of an “unacceptable level” of positive transportation imbalances, and followed up Tuesday with a request that shippers ensure that physical receipts and deliveries were in balance on a daily basis and that they reduce any positive imbalances immediately. However, effective voluntary compliance was inadequate, the pipeline said, and it could “no longer tolerate daily positive imbalances in the face of warmer-than-normal temperatures expected for its market area.” The OFO requires that positive imbalances (i.e., more receipts into the system than deliveries) of 5% and at least 1,000 dekatherms above nominations will be subject to penalties of $25/Dth for the excess.

TECO Energy’s energy services subsidiary, TECO Solutions, has purchased Prior Energy Corp., a mid-sized southeastern energy marketing firm, from Prior Chemical, a subsidiary of ICC Industries. Terms of the deal were not disclosed. The acquisition is expected to be neutral to TECO’s earnings in 2001 and slightly accretive in 2002. It also will significantly expand TECO’s marketing operations in the Southeast and Gulf Coast regions.

TECO Energy’s energy services subsidiary, TECO Solutions, has purchased Prior Energy Corp., a mid-sized southeastern energy marketing firm, from Prior Chemical, a subsidiary of ICC Industries. Terms of the deal were not disclosed. The acquisition is expected to be neutral to TECO’s earnings in 2001 and slightly accretive in 2002. It also will significantly expand TECO’s marketing operations in the Southeast and Gulf Coast regions.

Two major pipeline projects announced last week for Atlantic Canada underline the developing potential of the area, which some are calling a Canadian counterpart to the Gulf of Mexico.

AmeriGas Partners LP became the nation’s largest retail propane marketer by completing the $202 million purchase of Columbia Propane from NiSource in a deal that closed last Tuesday. The combination will distribute more than one billion retail gallons per year from more than 700 locations.

AmeriGas Partners LP became the nation’s largest retail propane marketer with the $202 million purchase of Columbia Propane from NiSource. The deal closed onm Tuesday. The combination will distribute more than one billion retail gallons per year from more than 700 locations.

Sen. Dianne Feinstein (D-CA) has asked the Senate Committee on Governmental Affairs to investigate the possibility of an improper relationship between the energy industry and the Federal Energy Regulatory Commission based on an exchange between FERC Chairman Curtis Hebert and Enron Chairman Ken Lay as reported recently in The New York Times.

Rumors last week about a potential marriage between Mid-Atlanticutilities Potomac Electric Power and Conectiv turned out to be onthe money. The two companies announced yesterday that Pepco willbuy Conectiv for a combination of cash and stock valued at $2.2billion or $25/CIV share, a 19% premium compared to Friday’s close.

Alberta spot sales have reached C$7/Mcf (US$4.83) and centralCanadian distributors are warning customers to expect an expensivewinter. Analysts see no end to the tight markets. But natural-gasproducers say they have found a way out — tap the Arctic.