Class

Tennessee Gas Pipeline has come under fire at FERC for a proposed tariff filing that would allow the pipe to terminate a replacement shipper’s capacity contract if the original shipper who released the capacity was found to be a credit risk and its contract dissolved. Tennessee could then subject the replacement shipper’s capacity to open-season bidding by other potential shippers.

Tennessee Gas Pipeline has come under fire at FERC for a proposed tariff filing that would allow the pipe to terminate a replacement shipper’s capacity contract if the original shipper who released the capacity was found to be a credit risk and its contract dissolved. Tennessee could then subject the replacement shipper’s capacity to open-season bidding by other potential shippers.

Illinois’ statewide nonprofit utility watchdog, the Citizens Utility Board (CUB), on Wednesday filed a class-action lawsuit accusing Nicor Gas and an unregulated sister company, Nicor Services, of deceptively marketing its “Fixed Bill” plan, which the lawsuit claims has caused some of Illinois consumers’ natural gas bills to more than double. CUB first made the charges of deceptive practices against the Naperville, IL-based company in April (see Daily GPI, April 12).

Illinois’ statewide nonprofit utility watchdog, the Citizens Utility Board (CUB), on Wednesday filed a class-action lawsuit accusing Nicor Gas and an unregulated sister company, Nicor Services, of deceptively marketing its “Fixed Bill” plan, which the lawsuit claims has caused some of Illinois consumers’ natural gas bills to more than double. CUB first made the charges of deceptive practices against the Naperville, IL-based company in April (see Daily GPI, April 12).

Exxon Mobil has settled a $20 million class action lawsuit with about 1,600 royalty owners in West Texas who alleged the company did not pay them proper royalties from natural gas produced over two decades. An Exxon spokesman said the company decided to settle the case instead of having a lengthy trial.

Dynegy said it sold 25 million shares of Class A common stock at $20.75 per share in an underwritten public offering related to the capital restructuring program announced on Monday (see Daily GPI, Dec. 18). Net proceeds from the sale totaled $494 million and will be used to reduce debt. Lehman Brothers acted as sole underwriter and retains a 10% over-allotment option for 30 days.

The Wyoming Interstate Co. system west of Rawlins will be shut down for 16 hours Aug. 14 to upgrade the pipeline to meet new class code requirements. The Overthrust, Questar-WIC, Red Sand, Wapiti and Lost Creek points must be shut in for the duration of the work. A reduced capacity schedule will be coordinated with affected parties for that day, WIC said. Throughout August, the new Medicine Bow Loop will be connected at various locations to the existing Medicine Bow Lateral. No impact to service is anticipated except when Cheyenne Compressor Station is removed from service for one day for construction work, cutting lateral capacity to about 400 MMcf for the day.

The Woodlands, TX-based Mitchell Energy & Development Corp. reported Monday that the previously announced secondary offering of Class A Common Stock has closed. Under the offering, founder and CEO George P. Mitchell sold 4,681,200 shares at $53.00 per share, including an over-allotment of 181,200 shares purchased by the underwriters. The move follows comments Mr. Mitchell made last Wednesday regarding interest in purchasing the company from potential buyers (see Daily GPI, May, 10). Analysts said last week that with Mitchell selling some of his personal stock, the company would be more attractive to outside investors.

Calpine Corp. announced plans to buy 36 F-class gas-firedturbines from Orlando, FL-based Siemens Westinghouse Power Corp.The agreement includes long-term service programs and performanceenhancements on existing equipment. Beginning in 2003, SiemensWestinghouse will deliver 18 turbines per year to Calpine through2004. When operated in a combined-cycle configuration, the 36 newturbines equate to approximately 9,800 MW of electricity generationpotential for Calpine’s development portfolio. Calpine is active in20 states and Alberta. It currently has 17,200 MW of capacity inoperation, under construction or in announced development.