After engaging in a Northeast LDC eating binge last year, EnergyEast Corp. started the digestion phase of its strategy yesterday byannouncing the completion of its Connecticut Energy purchase. Thetransaction gives Energy East control over Southern Connecticut GasCo., an LDC serving 160,000 customers. The original purchase offerwas made last April for $617 million. Energy East (formerly knownas NYSEG) still has a full plate, however, as its transactions withCTG Resources, CMP Energy and Berkshire Energy are still beingprocessed. Following the completion of all the acquisitions, EnergyEast will have more than 1.3 million electric customers and morethan 542,000 gas customers, excluding any added through CMP NaturalGas, the Maine gas distribution partnership of Energy East and CMP.With CTG and Connecticut Energy, Energy East becomes the largestgas distributor in the state with about 300,000 customers.
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Entergy Plans 5-Year Spending Binge
Entergy Corp., a major New Orleans-based power producer andutility company, will keep its wallet open for the foreseeablefuture as it unveiled a five-year $9.8 billion capital investmentplan yesterday. The company said it will use the cash influx tofuel growth in power development and nuclear operations businesses,while also improving the performance of its utility operations.
Calpine’s Buying Binge Engulfs CGCA
Acquisitive Calpine Corp. stuck to its strategy last Friday,saying it agreed to buy 80% of the Minneapolis, MN-basedCogeneration Corp. of America (CGCA) for $145 million. The proposedacquisition will increase Calpine’s gas-fired energy production to2,476 net MW of capacity, representing a 20% jump in production.Calpine expects to complete the deal in January.
Peoples Marches On With Production Growth
Peoples Energy Production Co., the affiliate of Peoples Gas,extended a year-long buying binge Thursday, by obtaining 70% ofEnsign Operating Co.’s Arkoma basin assets for $15 million. Theproduction arm of Peoples Energy has now spent $65 million inpartnerships and acquisitions since the fall of 1998.
CMS Adds Midstream and Downstream Assets
CMS Gas Transmission and Storage Co. continued its activitybinge Wednesday as its subsidiary CMS Continental Natural Gaspurchased Anson Gas Marketing and the Midcontinent Gas Pipelinefrom Chesapeake Energy Marketing. Terms of the transaction were notdisclosed.
