Contracts

Industry Briefs

Kinder Morgan says an open season for an expansion of TrailblazerPipeline has signed up 300 MMcf/d of fixed rate contracts for aminimum term of 10 years. The company is targeting the fourth quarterof 2002 for completion of the $54 million project. The proposedexpansion of Trailblazer’s 436-mile pipeline would start in Rockport,CO, at a multi-pipeline connection, and end in Gage County,NE. Trailblazer plans to install two new compressor stations, addadditional horsepower at compressor station 602 and perhaps constructsome 36-inch loop. The open season “generated a very strongresponse,” said Richard D. Kinder, chairman of Kinder Morgan EnergyPartners L.P. The company dropped an earlier plan to include anextension to its pipeline system in the open season when it appearedColorado Interstate Gas would have an expansion of its competingMedicine Bow lateral completed before a new Trailblazer line could beconstructed (see Daily GPI, Aug. 8).

August 25, 2000

Cinergy Fields a New Team of Trading Players

After defaulting on multiple contracts last July during a periodof extreme power prices and taking huge losses to make up for theproblem, Cinergy considered getting out of trading entirely.However, it ended up scaling back its national operations to aregional focus and it brought in a large new team of moreexperienced players.

August 7, 2000

Cinergy Fields a New Team of Trading Players

After defaulting on multiple contracts last July during a periodof extreme power prices and taking huge losses to make up for theproblem, Cinergy considered getting out of trading entirely.However, it ended up scaling back its national operations to aregional focus and it brought in a large new team of moreexperienced players.

August 1, 2000

Leviathan Contracts for Platform Hull for GOM

Leviathan Gas Pipeline Partners LP contracted with MODECInternational LLC for construction of the hull for a floatingplatform to be used as part of its Sunday Silence field developmentproject in Gulf of Mexico Ewing Bank Blocks 958, 959, 1002 and 1003in 1,500 feet of water. MODEC International, which is owned by FMCCorp. and Mitsui Engineering & Shipbuilding, was selected byLeviathan after reviewing four competitive bids.

July 20, 1999

PG&E Seeks Additional Summer Power from IPPs

Pacific Gas and Electric Co. and California’s independent powerproducers with qualifying facility (QF) contracts have cut a dealto free up excess power from the merchant generators to help handledemand spikes anticipated during this summer’s heat waves. TheCalifornia Independent Energy Producers (IEP) expect to have anadvice letter filing with state regulators by the end or April tofree up as much as 1,000 MW of power in the summer. Thin ancillaryservices supplies last summer caused record price spikes.

April 22, 1999

NOI Could Result in More Dynegy-El Paso-Like Contracts

Allowing interstate gas pipelines to sell long-term turnbackcapacity at market-based rates, without first requiring a showingof a competitive market or mitigation measures, could trigger morealleged “anticompetitive” contract arrangements between pipes andmarketers – similar to the one between Dynegy Marketing and Tradeand El Paso Natural Gas, warned California regulators.

January 21, 1999

Futures Continue to Plod Toward $2.00

Expiration day at Nymex has been a bull-trader’s worst nightmarerecently because the last several contracts have been ushered offthe board amid a tempest of late selling activity. Septemberslipped 9 cents on its last trading day to cap off a 27.5 centprice decline for the week. Likewise, October and Novemberplummeted 15 cents and 13.6 cents to settle to either side of $2.00at final settlement. And although December’s fate is far fromsealed, Monday’s 6.6-cent losses and $2.097 penultimate settlementprompted traders to wonder if the market might be in for anotherround of expiration-day losses today.

November 24, 1998

Peoples Energy Buys mc2 Retail Portfolio

Peoples Energy Services has purchased the Midwest portfolio ofKN Energy subsidiary mc2 for an undisclosed sum. The transactionincludes 8,000 gas contracts, inventories and related receivables,increasing PE Services’ customer base to more than 20,000 Chicagoarea businesses, the largest of any supplier in the Chicago market,the company said.

August 28, 1998

PG&E Energy Services Inks Retail Deal

PG&E Energy Service continued to amass a large collection ofretail supply and services contracts yesterday, adding Lucky Storesand American Drug Stores to a list that includes Safewaysupermarkets, Rite-Aid drug stores, McDonald’s restaurants,Blockbuster stores, ARCO gas stations Neiman-Marcus departmentstores and IBM.

June 18, 1998

Avista Signs With Retailers

Energy services company Avista Advantage signed contracts with36 Musicland and 59 Busy Body Home Fitness sites throughout theUnited States. The company now serves 3,500 customers in 48 states.Both Musicland and Busy Body Home Fitness are members of RETEX, aretail technology buying consortium. Avista Advantage is RETEX’spreferred provider of energy services. RETEX represents about 1,600member retail companies.

June 16, 1998