Increased

The increase in prices is primarily attributable to increased demand for electric generation and storage injections.

Seeking increased growth opportunities, Citizens Utilities ofStamford, CT, is getting out of the business of distributing gas,electricity and water in order to invest in telecommunications. Thecompany is divesting its Public Services distribution businesses,as well as its wastewater treatment business. As previouslyannounced, Citizens plans to fund $2.3 billion of telephone accessline acquisitions with sale proceeds.

Anadarko Petroleum, reporting a strong second quarter andincreased capital spending, also revealed last week it is gainingGulf of Mexico sub-salt exploration rights through an agreementwith Texaco Exploration and Production.

Pennaco Energy increased its capital expenditure budgetWednesday from $18.4 million to $26.5 million in a move intended tocapture the “hottest domestic onshore play” in the country. All ofthe revised budget will be invested in Powder River Basinoperations.

While reporting increased earnings overall for both its utilityand unregulated businesses, PG&E Corp.’s first quarter resultsreleased yesterday (May 17) continue to show red ink for its Texasnatural gas operations, trading and energy services businesses.Results were net earnings of 42 cents-per-share, or 37 cents fullydiluted, compared to 36 cents-per-share for the first quarter of1998. Overall, the utility contributed all but three cents to theearnings, compared to 1998 first quarter when it provided 100percent of the earnings.

Calgary-based TransCanada Gas Processing Ltd., the generalpartner of TransCanada Gas Processing LP, said processing volumesat the Cutbank Joule-Thompson (J-T) plant have increasedsignificantly since operations began last month due to tie-in ofChevron Canada Resources production four months ahead of schedule.

Oneok increased its offer to acquire Southwest Gas by $1.50Monday, winning the Southwest Gas board of directors’ approval anddefeating an unsolicited bid from Austin, TX-based Southern UnionCo. The new monetary total of the merger is $1.8 billion or$30/share of common Southwest Gas stock. Southern Union had acompeting, unsolicited bid for Southwest of $32/share on the table,but Southwest had reservations concerning Southern Union’stimetable for the deal’s completion.

Williams’ exploration and production division increased the sizeof its gas reserve holdings by nearly 30% last week, buying 184Bcfe of proved reserves with 30 MMcf/d of production and 192,000undeveloped acres in the Rocky Mountain region from MCN Energy for$106 million. An additional 35 Bcfe of proved reserves in theRockies were sold by MCN to other unnamed buyers.

Williams’ exploration and production division increased the sizeof its gas reserve holdings by nearly 30% yesterday, buying 184Bcfe of proved reserves with 30 MMcf/d of production and 192,000undeveloped acres in the Rocky Mountain region from MCN Energy for$106 million. An additional 35 Bcfe of proved reserves in theRockies were sold by MCN to other unnamed buyers.