Industry

Industry Briefs

The Energy Information Administration has a new web site with aninteractive map on natural gas choice programs nationwide. The mapshows programs for residential customers in individual states rangefrom full choice (in New Mexico, New York and West Virginia, withan additional nine states in the implementation phase) to test or”pilot” programs in 11 states that provide a choice of supplier forsome customers. An additional 11 states are considering action oncustomer choice, while 17 states have thus far taken no action. EIAfound consumer reaction to choice has been mixed. In some states,such as Nebraska, 97% of the eligible residential and commercialcustomers are electing to choose a supplier. In other states,however, such as Indiana and New Jersey, the participation is 2% orless of those eligible. The map does not provide complete data oncustomer choice or nationwide totals, but it does provide importantinformation on gas unbundling in each state. An EIA spokeswomansaid the administration plans to continue updating the site andintends to release a summary page soon that is expected to shownationwide residential participation levels at about 17% of thoseeligible. To find out more about the status of choice programs ineach of the 50 states and the District of Columbia visit the EIAweb site at: http://www.eia.doe.gov.

July 14, 1999

LG&E Picks Up Leading Pipeline Construction Co.

LG&E Energy Corp. positioned itself to take advantage of theexpanding pipeline construction industry last Friday by purchasingCRC Holdings Corp., parent of the pipeline construction equipmentcompany CRC-Evans Pipeline International, for a total of $83.5million. The deal closed last Friday. No layoffs are expected.

July 13, 1999

LG&E Picks Up Leading Pipeline Construction Co.

LG&E Energy Corp. positioned itself to take advantage of theexpanding pipeline construction industry last week by purchasingCRC Holdings Corp., parent of the pipeline construction equipmentcompany CRC-Evans Pipeline International, for a total of $83.5million. The deal closed on Friday. No layoffs are expected.

July 12, 1999

CPUC Finds 10 Areas Requiring More Gas Restructuring

California energy regulators last week identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

July 12, 1999

CPUC Finds 10 Areas Requiring More Gas Restructuring

California energy regulators yesterday identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

July 9, 1999

Industry Briefs

Construction is scheduled to begin this month on the PacificNorthwest’s first merchant power plant, a natural gas-fired 500 MWplant in the southern Oregon city of Klamath Falls just north ofthe California border and east of the Cascade Mountains. Commercialstart-up is scheduled for July 2001. The City of Klamath Falls,using $300 million tax-exempt public revenue bonds, will own theplant. PacifiCorp Power Marketing will build, manage, operate andfuel the plant. And PG&E Gas Transmission/NW will transport gasthrough an enlarged portion of its 80-mile, east-to-west MedfordLateral off its main north-to-south interstate pipeline thatcarries Canadian supplies to markets in California as well as thePacific Northwest. The plant is expected to need about 9 MMcf/d forits peak output. The City of Klamath Falls will use half of theplant’s electricity generation to operate municipal facilities, andPacifiCorp will market the remaining power, mostly to surroundingprivate- and public-sector utilities.

July 9, 1999

Industry Briefs

Dominion Energy Inc., a subsidiary of Dominion Resources, andRiver Gas Corp., a privately held company based in Northport, Al,said Friday they have jointly acquired lease rights to develop19,000 acres of coalbed methane territory in Alabama’s BlackWarrior Basin. Terms of the acquisition were not disclosed. Thearea produces about 315 MMcf/d of coalbed methane. The jointventure acquired the assets from Pittsburgh and Midway Coal MiningCo. Dominion and River Gas expect to drill approximately 200 wellson the newly acquired acreage over the next three years. Together,the two companies currently own and operate more than 530 coalbedmethane wells in the region which produce 50 MMcf/d. River Gasbegan operation of these properties in 1987 and was one of theearliest operators in the Black Warrior Basin. The Black WarriorBasin is a 35,000-square-mile area in northwest Alabama.

July 6, 1999

Industry Briefs

Shareholders of SCANA Corp. and Public Service Company of NorthCarolina approved a two-step merger transaction under which PSNCwill become a wholly owned subsidiary of SCANA. Shareholdersrepresenting about 76% of Scana’s outstanding shares and about 80%of PSNC’s outstanding shares approved the two proposals. The mergerstill requires state and federal regulatory approvals. Completionis anticipated during the second half of 1999.

July 2, 1999

Industry Briefs

Dynegy has fired up its first constructed, owned and operatednatural gas-fired peaking plant, the 250 MW Rocky Road Power Plantnear Chicago, in time to serve the summer air conditioning load.Dynegy plans to sell the power generated at the merchant powerplant into the wholesale electricity market. As a peaking plant itwill run on an as-needed basis. The Rocky Road plant is part of thecompany’s previously announced plan to back up its trading unitwith a $5 billion generation expansion program. Dynegy is aiming toown or control more than 70,000 MW of generating capacity by 2003.It has 6,800 gross MW operating or under construction and recentlyannounced plans for two natural gas-fired 500 MW plants, one inHeard County, GA and another in Oldham County, KY.

July 1, 1999

Industry Briefs

Allentown, PA-based electric utility PP&L said it set acompany record Monday for delivering summertime power. During hightemperatures and heavy humidity in central and easternPennsylvania, PP&L delivered 6,128,000 kWh of electricity tocustomers between 1 and 2 p.m. Monday. The company’s formersummertime record of 6,046,000 kWh was set July 15, 1997. PP&Lsaid it was able to set the delivery record without anyinterruption or curtailment of service to customers. In otherregional power news the New England Independent System Operatorcanceled a power warning that had been set through last night andsaid customers could resume normal power usage.

June 30, 1999