Independent

Some major U.S. independent producers absorbed major blows tothe bottom line in the first quarter of 1999, but CEOs from thecompanies insist higher profits are right around the corner.

Some major U.S. independent producers absorbed major blows tothe bottom line in the first quarter of 1999, but CEOs from thecompanies insist higher profits are right around the corner.

The Senate unanimously passed two economic relief measures forindependent oil and gas producers on Tuesday. The bad news,however, is that the initiatives are part of a supplementalspending bill that President Clinton has threatened to veto becausethe expenditures – mostly for foreign aid efforts – would cut intospending for domestic programs that he supports.

Edison International’s wholly-owned independent power subsidiarywill acquire all the fossil-fuel generating assets of CommonwealthEdison. The company will pay about $5 billion for a package of coaland gas-fired plants with total capacity of 9,772 megawatts (MW).Edison Mission Energy has also committed to build 500 MW ofgas-fired generating capacity in Chicago.

CalEnergy Co. Inc. and MidAmerican Energy Holdings Co. formallyclosed their merger Friday, marking the first time that anindependent power producer has acquired a traditional gas andelectric utility. The Iowa Utilities Board’s (IUB) recent approvalof the deal cleared the way for it to be completed.

Calpine Corp., a San Jose-based independent power company,announced plans to build, own and operate a 540-megawatt gas-firedpower plant in Westbrook, ME. Calpine acquired development rightsfor the Westbrook Power Plant from Genesis Power Corp. of Needham,MA. Construction of the $300 million facility is scheduled to beginlater this month. The plant, which will burn about 90 MMcf/d, isscheduled to begin power deliveries as early as November 2000 andwill serve the New England market. Westbrook is Calpine’s fourthcombined-cycle facility under development in the New Englandmarket.

Anadarko Petroleum Corp., an independent oil and gas company,announced Wednesday it has purchased 7.5 acres in a Houston suburbin order to build a 32-story, 800,000 square foot headquartersbuilding. The company said it needs to move to accommodate itsgrowth needs. Groundbreaking is expected early next year. Anadarkoplans to move in mid-2002.

The Independent Petroleum Association of America (IPAA) praisedthe action of Interior Secretary Bruce Babbit in allowing marginaloil well operators producing on public lands to suspend operationsfor up to two years without losing their leases. The announcementcame Thursday on the heels of the release of an IPAA survey showinghistorically low oil prices have increased the number of shut-insand the industry unemployment rate.

The Independent Petroleum Association of America (IPAA) praisedthe action of Interior Secretary Bruce Babbit in allowing marginaloil well operators producing on public lands to suspend operationsfor up to two years without losing their leases. The announcementcame Thursday on the heels of the release of an IPAA survey showinghistorically low oil prices have increased the number of shut-insand the industry unemployment rate.