Capital

A simultaneous blend of production capacity and capital dollars, tossed together with significant growth in electric generation, created the perfect “aligning of the planets” to finally make a serious go at building a subsea natural gas pipeline from Nova Scotia to the northeast United States, with a possible end point of New York City, said one of the executives involved in the planning.

Pipeline construction season has officially begun as two natural gas pipeline companies formally announced on Tuesday their new proposed projects for the Southeastern region’s gas needs. As Southern Natural Gas Co. unveiled its intentions to expand its Sonat system for the third time in the last year to supply incremental demand in Alabama, Georgia and South Carolina, Duke Energy Gas Transmission (DEGT) launched a month-long open season to determine market interest in a new natural gas supply and transportation option called the Alabama-Georgia Energy System.

Black Hills Energy Capital, Inc., the independent powersubsidiary of Black Hills Corp., says it has signed a definitiveagreement to purchase a 240 MW gas-fired turbine generationfacility located near Colorado Springs, CO, from Enron NorthAmerica.

To strengthen its capital structure before an anticipated spinoff this year, Tulsa-based Williams Communications exchanged assetsfor shares of stock with its parent company Williams yesterday. Inthe agreement, Williams received 24.3 million common shares ofWilliams Communications, bringing its total ownership to 420million shares, or 86% of the outstanding stock. In return forequity, Williams Communications will purchase its outstandingpromissory note from Williams and acquire the 15-story,750,000-square-foot Williams Technology Center, scheduled forcompletion this summer adjacent to Williams’ headquarters in Tulsa.

Black Hills Energy Capital Inc., the independent powersubsidiary of Black Hills Corp. announced it has initiated thepermitting process to build a coal-fired electric generatingfacility capable of up to 500 MW adjoining its other generatingplants near Gillette, WY.

Cinergy Corp. yesterday reported that its non-regulated affiliate, Cinergy Capital & Trading, is in the process of adding almost 1,000 MW of electricity to its generating portfolio in the southeastern United States through an acquisition of two of Enron North America’s power plants.

Avista Advantage, a subsidiary of Avista Corp., has completed aninvestment agreement for an undisclosed amount with Wayne, PA-basedEnerTech Capital Partners to help refine, expand and market theSpokane, WA-based company’s suite of facility cost managementservice offerings. The agreement completes Avista Advantage’s firstround of private equity financing. Gary G. Ely, Avista Corp.’sacting CEO, said the agreement “will focus new attention on thisimportant market segment, and create new value growth opportunitiesfor both companies.” EnerTech, one of the Safeguard Scientificsfunds, is based in Wayne, PA. It specializes in companies poisedfor growth through deregulation, targeting the convergence of theenergy, utility and telecommunications industries.

The FERC majority’s ruling rejecting Morgan Stanley CapitalGroup Inc.’s efforts to participate in bidding in the New York bulkpower market “coddles” the New York Independent System Operator(NYISO), Commissioner Curt Hebert Jr. said last week.

Alliant Energy Resources Inc. has dropped a $10 millioninvestment into Nth Power Technologies Fund II, LP, a venturecapital fund that invests in emerging opportunities fromrestructuring in the energy industry both domestically andinternationally.