File

Western Resources and Kansas City Power & Light filed withthe FERC a settlement relating to market power, transmission andcustomer protection issues stemming from the planned merger of thetwo companies. Staff of the Federal Energy Regulatory Commissionand other major parties to the case support the filing, accordingto Western.

Tatham Offshore said yesterday that four of its subsidiaries,including Rigco North America LLC, FPS III, FPS V and FPS VI, whichown virtually all the company’s operating assets, filed for reliefunder Chapter 11 in the US Bankruptcy Court for the SouthernDistrict of Texas earlier this week.

New Century Energies and Northern States Power said they havefiled, or are expected to file later this week, merger applicationswith state regulators in Colorado, Wyoming, Minnesota, Texas, NewMexico, Kansas and North Dakota and with FERC. Other filings withadditional state and federal regulators will follow. NCE and NSPshareholders approved the merger on June 28. The proposedcombination, to be called Xcel Energy, will serve three millionelectricity customers and 1.5 million natural gas customers in 12states.

Baltimore Gas and Electric (BGE), the electric and gas utilitysubsidiary of Constellation Energy Group, filed a comprehensiveelectric restructuring settlement last week with the MarylandPublic Service Commission (PSC) that will lead to system-wideelectric customer choice on July 1, 2000. It also would provide a6.5% base electric rate decrease (about $54 million a year) for upto six years for residential customers who continue to buy powerfrom BGE. Electric distribution rates for BGE’s commercial andindustrial customers will be frozen for four years, while rates forgeneration will depend upon the service options selected.

Baltimore Gas and Electric (BGE), the electric utilitysubsidiary of Constellation Energy Group, filed a comprehensiveelectric restructuring settlement yesterday with the MarylandPublic Service Commission (PSC) that will lead to system-widecustomer choice on July 1, 2000 and a 6.5% base rate decrease(about $54 million a year) for up to six years for residentialcustomers who continue to buy power from BGE.

The Massachusetts Department of Telecommunications and Energy(DTE) sent an order (File # 98-32-B) last Wednesday to all 10 stategas utilities, requiring them to deregulate service to residentialcustomers by 2004. The order directed gas utilities to work withmarketers on planning for a competitive market during the five-yeartransition. After the first three years of the program, the DTEsaid it will review the situation to determine if additionalefforts are needed to help spur competition. Massachusettscommercial and industrial consumers have had gas customer choicesince 1993.

Following the lead of Central Illinois Light Co. (CILCO),Peoples Energy’s Chicago gas utilities, Peoples Gas and North ShoreGas, last week took advantage of a state law passed last year thatallows the LDCs to request approval of fixed annual gas rates.

The Interstate Natural Gas Association of America (INGAA) isexpected to file a comprehensive plan today asking FERC to exertlighter handed regulation over all pipeline facilities in the Gulfof Mexico.

BC Gas said it will file another application with the BritishColumbia Utilities Commission (BCUC) for its previously deniedSouthern Crossing Project and said a recent open season garneredinterest exceeding available capacity.