Group

Shareholders of MCN Energy Group and DTE Energy bothoverwhelmingly voted in favor of their two companies’ mergeryesterday. DTE proposed to purchase MCN last October (see DailyGPI, Oct. 6). The deal still needs Security and ExchangeCommission, Federal Trade Commission (FTC) and FERC approval. Thecompanies expect the merger to close in mid-2000.

While only 11 states can boast of legislation requiringstatewide customer choice for gas service, a group of Michiganlegislators have recently acted to boost that total. A package ofseven bills was introduced to the state legislature last week withthe goal of totally deregulating the state’s gas industry by April2005. Rep. Mary Ann Middaugh (R-MI-MIH080), one of the package’ssponsors and chair of the energy and technology committee, said thepackage will be considered when the Michigan House returns toLansing next month.

Prairielands Energy Marketing Inc., a Bismarck, ND-basedsubsidiary of MDU Resources Group, and Preston Reynolds & Co.,based in Denver, formed Sage Gas Alliance LLC to focus onmarketing gas supplies originating in the Rockies region,principally within the Powder River Basin of Wyoming where PR&Cis a significant producer and developer of coalbed methane gas.

As of today Sonat is extending application of an OFO Type 3 thattook effect Tuesday for four segments (see Daily GPI, Nov. 30) to the Birmingham Group and SouthMain Zone 3.

Houston-based Shell Energy, a subsidiary of Shell Oil Co., choseEnergy Services Group (ESG) of Pembroke, MA, to provide electronicdata interchange (EDI) and data processing services in selectedretail energy markets. ESG assists energy companies with data andtransaction processing required to service retail customer accountsin deregulated markets.

Reliant Energy Retail Group and Luby’s Restaurants LP of SanAntonio, TX, made a multi-year energy services agreement fornon-regulated Reliant Energy Solutions Inc. to develop andimplement a comprehensive energy management services program forall Luby’s locations in the United States.

NiSource Inc. said last week it has decided to extend its$74/share tender offer ($6.1 billion) for Columbia Energy Group’soutstanding common shares until 12 a.m. Dec. 10, while itparticipates in the negotiation process recently set up byColumbia. Meanwhile, Columbia told the SEC yesterday it has begunnegotiating with “numerous third parties,” including NiSource, whoare interested in reviewing non-public information about thecompany and considering making proposals for a potential merger orpurchase transaction.

NiSource Inc. said yesterday it has decided to extend its$74/share tender offer ($6.1 billion) for Columbia Energy Group’soutstanding common shares until 12 a.m. Dec. 10, while itparticipates in the negotiation process recently set up byColumbia. Meanwhile, Columbia told the SEC yesterday it has begunnegotiating with “numerous third parties,” including NiSource, whoare interested in reviewing non-public information about thecompany and considering making proposals for a potential merger orpurchase transaction.

Columbia Energy Group is planning some significant investmentsin wholesale power generation and possibly foreign utilities andhas filed a request with the Securities and Exchange Commission toexpand its authority under the Public Utility Holding Companies Actto make such investments. Columbia told the commission it wants tobe able to invest an amount equal to 100% of its annual earnings.It currently is authorized to invest only 50% of its earnings insuch projects.