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A strategic alliance between Sempra Energy Trading and recentlyformed MEG Marketing LLC of Georgia is targeting the Southeast witha stable of energy products and seeks to capitalize on MEG’s statusas a minority/woman-owned business.

Oklahoma Attorney General Drew Edmondson is appealing the Oklahoma Corporation Commission’s (OCC) preliminary approval of a stipulation agreement between the OCC and Oneok (parent of Oklahoma Natural Gas). The agreement consolidates two ongoing rate cases and provides for an interim rate reduction for Oklahoma customers of ONG and Kansas Gas Service of $5 million per year beginning in September. The attorney general maintains a larger rate reduction may be in order.

Oklahoma Attorney General Drew Edmondson is appealing theOklahoma Corporation Commission’s (OCC) preliminary approval of astipulation agreement between the OCC and Oneok (parent of OklahomaNatural Gas) that consolidates two ongoing rate cases and providesfor an interim rate reduction for Oklahoma customers of ONG andKansas Gas Service of $5 million per year beginning in September.The AG maintains a larger rate reduction may be in order.

The Oklahoma Corporation Commission (OCC) Wednesday will resumea hearing on a negotiated settlement on rates, unbundling andcompetitive bidding between the commission and Oneok Inc. and itssubsidiaries Oklahoma Natural Gas (ONG) and Kansas Gas Service(KGS). The hearing began Friday.

Trunkline postponed a three-day outage of Valve Section 32between the Cypress and Kountze Stations in East Texas until June.It will require shutting in all receipts upstream of the sectionunless they entail equal deliveries upstream.

Capacity on Transwestern’s San Juan Lateral between Ignacio, COand Blanco, NM will be limited to about 525 MMcf/d during a one-dayemergency shutdown test and maintenance outage May 11 at BloomfieldCompressor Station. Normal capacity of about 800 MMcf/d will resumeMay 12. Transwestern suggested the Blanco and Window Rock points onEl Paso to shippers as alternate options for gas flow out of SanJuan during the Bloomfield outage.

Representing the latest curve on what has become a very windyroad, Southwest Gas announced Wednesday it is reviewing SouthernUnion’s revised merger offer even though it already entered into amerger agreement with Oneok earlier this week. With two offers onthe table, Southwest Gas has said it will not comment further onthe subject until a decision is made, and industry analysts say thedecision will not be easy.

Pioneer Natural Resources Co. of Dallas announced thetermination of a purchase and sale agreement between Pioneer andCostilla Energy Inc. for the sale of certain oil and gas propertiesto Costilla. As a result of Costilla’s failure to close the April 1agreement, Pioneer has received one million additional shares ofCostilla common stock as liquidated damages.

A partnership between Sempra Energy International and PublicService Enterprise Group (PSEG) won approval from the board ofdirectors for Chilquinta S.A. to buy Chilquinta Energia, for $830million, Chilquinta announced Tuesday. Chilquinta Energia isChile’s third-largest electricity supplier, serving 405,000customers. Along with Chilean electricity supply, the Sempra – PSEGpartnership would acquire Energas, a Chilean natural gasdistribution company. Energas began service in May of 1998 andplans to reach 50,000 customers by 2003. Both Sempra and PSEG saidthe deal will progress their Latin America growth strategies andlook forward to entering into the Chilean electric market, whichhas grown 8% each year since 1991, compared to 1%-2% in the U.S.The deal is contingent on the buyers’ review and approval ofschedules for the definitive stock purchase agreement. Both Sempraand PSEG expect the purchase to be accretive in 1999. The $830million would net 90% of Chilquinta Energia’s stock for thepartnership. Upon final acquisition, Sempra and PSEG will be ableto make a tender offer to acquire the remaining 10 percent ofChilquinta Energia shares from other shareholders.