Five

The acquisition and management of natural gas supplies is a keypart of San Jose, CA-based Calpine Corp.’s five-year strategy tohave generating plants totaling 25,000 MW by the end of 2004, theaggressive merchant power plant developer/operator’s seniorexecutives told the company’s annual shareholders’ meeting lastweek.

ScottishPower announced a transition plan for PacifiCorpyesterday that includes a workforce reduction of 1,600 PacifiCorpemployees over the next five years. By 2004, PacifiCorp is expectedto deliver annual cost savings from 1998 levels of $300 million inoperating expenses and $250 million in capital expenditures.Employee reductions will occur from all areas of the businessacross the company’s six-state service area. ScottishPower is aleading international multi-utility company with a marketcapitalization of about $16 billion and 7.5 million customersacross the U.K., western U.S. and Australia. Its merger withPortland, OR-based PacifiCorp was completed in November 1999.PacifiCorp currently serves 1.5 million customers in Oregon, Utah,Wyoming, Idaho, Washington and California.

The 50 largest U.S. oil and natural gas producers reported afive-fold increase in net profits during 1999, spurred byescalating oil and gas prices and lower operating costs, accordingto a new analysis by the energy research firm of John S. HeroldInc.

Suncor Energy Inc. of Calgary said it will reposition its gasbusiness to achieve at least a 10% return on capital within fiveyears. Suncor intends to build competitive operating areas, improvebase business efficiency and create new, low-capital businesses.

Suncor Energy Inc. of Calgary plans to reposition its gasbusiness to achieve at least a 10% return on capital within fiveyears. Suncor intends to build competitive operating areas, improvebase business efficiency and create new, low-capital businesses.

Brian Watt, CEO of Columbia Energy Services (CES), predicted ashakeout of retail energy providers over the next five years on thescale of what happened in the telecommunications industry, wheremarket participants dwindled from 400 to less than 10.

Coho Energy is exiting bankruptcy protection with new seniormanagement and a new bank facility. Coho and five of its affiliatesfiled for Chapter 11 Aug. 23. At the time, Coho listed totalliabilities of $425 million. Under the reorganization plan, Coho’sthree largest institutional bondholders converted their debt into90% of the equity of the reorganized company. These bondholdersalso provided the majority of the $72 million of subordinatednotes, as provided under the reorganization plan. The bondholdersare Appaloosa Management, Oaktree Capital Management and PPMAmerica.

The other shoe – five times larger than the first – dropped onReliant Energy’s Houston Lighting & Power Co. (HL&P) lastweek in a case that found the utility defrauded three Texas citiesof fees owed for its exclusive right to sell electricity. Adistrict court jury in Houston awarded the three cities $10 millioneach in punitive damages. That’s on top of $4.2 million in actualdamages (about $6 million including interest and attorneys’ fees)awarded two weeks ago.

The other shoe – five times larger than the first – dropped on Reliant Energy’s Houston Lighting & Power Co. (HL&P) Tuesday in a case that found the utility defrauded three Texas cities of fees owed for its exclusive right to sell electricity. Yesterday, a district court jury in Houston awarded the three cities $10 million each in punitive damages. That’s on top of $4.2 million in actual damages (about $6 million including interest and attorneys’ fees) awarded last week (see Daily GPI April 3).