Forward

The White House energy task force plans to forwardrecommendations for a national energy policy to Capitol Hill inearly April, according to a top staff official for the task force.

As the nation continues to creep warily forward into natural gasand electricity deregulation on all fronts, Cinergy Corp.understands that in order to take advantage of the full potentialof its companies it must change as well. The company announcedyesterday that it is embracing a new organizational structure thatwill increase the autonomy of its subsidiaries and focus on thegrowing importance of non-regulated markets.

As the nation continues to creep warily forward into natural gasand electricity deregulation on all fronts, Cinergy Corp.understands that in order to take advantage of the full potentialof its companies it must change as well. The company announcedyesterday that it is embracing a new organizational structure thatwill increase the autonomy of its subsidiaries and focus on thegrowing importance of non-regulated markets.

American Electric Power and Dow Chemical are moving forward withplans to construct a $325 million natural gas-fired cogenerationplant at Dow’s chemical complex in Plaquemine, LA. AEP also signeda 20-year contract for an undisclosed amount to sell all of thefacility’s 900 MW generation to Tractebel SA’s energy marketingunit once it is online, expected in early 2003.

While three top Canadian producers move forward on tappingnatural gas reserves on the Mackenzie Delta and designing apipeline to bring it to market, the first step is being takentowards reopening drilling much farther north. For the first timesince the Prudhoe Bay discovery ignited an exploration rush on thetop of the world in the 1960s and ’70s, the vast Sverdrup Basin inthe Arctic Islands is being offered to gas hunters.

FirstEnergy Corp. and GPU Inc. took a giant step forward intheir merger plans last week, submitting applications for approvalto the Federal Energy Regulatory Commission, the New Jersey Boardof Public Utilities and the Pennsylvania Public Utility Commission.Still to come will be approval by each company’s shareholders inspecial meetings set for Nov. 21.

With total electricity sales likely to creep along at a snail’space of 1.2% growth each year over the next five years, picking theright market to set up shop could be the difference between lifeand death for many power marketers and utilities, according to apresentation made last week by Mark J. Bock, senior economist onelectric power from WEFA Inc.

Ridge Energy Storage (RES) is moving forward on a fairlylarge-scale power project that will incorporate the rarelyimplemented process of using compressed air storage to produceelectricity. Ridge has entered into an exclusive arrangement withTexas Brine Company LLC (TBC) to develop up to 10 of theseprojects, with potential capacity to produce up to 600 MW each, ata number of Texas Brine’s brine production sites at salt cavernsalong the Gulf Coast.

Ridge Energy Storage (RES) is moving forward on a fairlylarge-scale power project that will incorporate the rarelyimplemented process of using compressed air storage to produceelectricity. Ridge has entered into an exclusive arrangement withTexas Brine Company LLC (TBC) to develop up to 10 of theseprojects, with potential capacity to produce up to 600 MW each, ata number of Texas Brine’s brine production sites along the GulfCoast.