Enters

AES Corp., a major electric generation and distribution company, continued to shift its focus onto downstream operations by forming a new subsidiary, Power Direct, to compete for electricity and natural gas retail customers in U.S. markets. Power Direct already is licensed to sell electricity in New Jersey and anticipates the receipt of a license in Pennsylvania by the end of August. The company plans to begin marketing in those states in the near future.

AES Corp., a major electric generation and distribution company,continued to shift its focus onto downstream operations by forminga new subsidiary, Power Direct, to compete for electricity andnatural gas retail customers in U.S. markets, the company saidyesterday. Power Direct is already licensed to sell electricity inNew Jersey and anticipates the receipt of a license in Pennsylvaniaby the end of August. The company plans to begin marketing in thosestates in the near future.

General Electric (GE) announced Thursday it has entered into ajoint venture with Plug Power, a Latham NY-based company dedicatedto the development and manufacturing of fuel cells, to market fuelcells worldwide. Terms of the transaction were not disclosed. Thetwo companies will combine efforts to form a new company called GEFuel Cell Systems. GE will own 75% of the new company, with PlugPower owning the rest. GE also acquired 10% of Plug Power ownershipin the deal.

CMS Energy Corp. went on a shopping spree yesterday, taking amajor stake in one of the Rocky Mountain region’s hottest newproducing areas, the Powder River Basin, and added to its growingMidcontinent midstream asset base with the purchase of Heritage GasServices, L.L.C.

While the congressional session enters its last month, Sens.Mike Enzi (R-WY), Craig Thomas (R-WY), Jeff Bingaman (D-NM) andRep. Barbara Cubin (R-WY) have made a late attempt to aid coalbedmethane producers and royalty owners whose leases have been throwninto “legal limbo” by a recent appellate court decision.Legislation introduced in both Houses of Congress would grandfatherany coalbed methane lease agreements in operation at the timelegislation is passed from the effects of the court ruling.

The first phase of the Dauphin Island Gathering System (DIGS)expansion was put in service last week, making it the first easternGulf of Mexico pipeline to transport deep-water production toonshore facilities in Alabama. When complemented by the secondphase of its expansion, DIGS – a project of the Dauphin IslandGathering Partners (DIGP) – will have the capability to deliver upto 1.1 Bcf/d to onshore markets and pipelines in south Alabama andsouth Louisiana. The system will have hub platform capabilities atmultiple locations on the Outer Continental Shelf and in deep-waterareas. It is expandable with the addition of compression.