Development

The New York State Energy Research and Development Authority (NYSERDA) and the New York Independent System Operator (NYISO) are concerned about a potential overload of the gas transportation system in the state. The two organizations have commissioned a study examining the impact of increased gas demand from 22 proposed new gas or dual fuel power plants, which currently are applying for permits under the state’s siting process. The dual fuel plants also may put a strain on the delivery infrastructure for alternative fuels, the organizations noted.

Yankee Energy System, part of the Northeast Utilities system, has completed the divestiture of several non-regulated energy development businesses.

Devon Energy Corp. of Oklahoma City, OK, announced last Tuesday that it will acquire Mitchell Energy & Development Corp. for $3.1 billion in cash and stock, making it the second largest independent natural gas producer in the United States after Anadarko Petroleum Corp.

The Department of Energy’s Office of Fossil Energy announced plans last week to partially fund 20 oil and gas research and development projects with a total contribution reaching more than $22 million.

The Department of Energy’s Office of Fossil Energy announced plans Wednesday to partially fund 20 oil and gas research and development projects with a total contribution reaching more than $22 million.

Dominion Evantage Energy Consulting, a division of Dominion, announced the appointment of Arthur Malatzky as business development manager. Art will be responsible for growing Dominion’s consulting customer base nationwide, with a primary focus on the industrial sector. Prior to joining Dominion, Malatzky served as manager of energy purchasing and policy for Olin Corp., a large, energy-intensive chemicals and metals company and, following its spin off from Olin, he served in a similar position with Arch Chemicals, Inc. He also managed Doe Run Gas Marketing and Doe Run Gas Transmission, subsidiaries of Arch and Olin.

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.

As bandwidth trading moves from idea to reality, its evolution is looking more like the development of trading in the power and natural gas markets, according to Nick Cioll, senior vice-president for trading operations at RateXchange. Cioll spoke last Wednesday at NGI’s GasMart/Power 2001 conference in Tampa, FL. He was joined by Louis Hunsucker, a bandwidth trader with Williams Communications, on a panel called “The Complete Utility: Adding Broadband.”

The Woodlands, TX-based Mitchell Energy & Development Corp. is attracting interest from potential buyers, according to founder and CEO George Mitchell, 81. Mitchell, speaking to reporters following the company’s annual meeting Wednesday, would not confirm nor deny that the company is considering offers. “We’ll see what happens,” he said.