Inks

Williams and AES Corp. re-lit the flame of their cozyrelationship yesterday. Williams signed a 20-year agreement withAES to supply gas and market 832 MW of generating capacity andassociated energy and ancillary services from AES’ planned Red Oakpower facility in Sayreville, NJ. Financial terms of the agreementwere not disclosed.

Williams and Utilicorp United continued their prosperousrelationship yesterday as the two companies announced a four-yeargas supply contract between Williams Gas Pipeline-Central and a 600MW power plant in Cass County, MO, that is 50% owned by Utlicorp.No financial terms were disclosed. Williams said gas is expected toflow in time for the testing phase of the plant in the early summerof 2001.

DTE Energy Technologies, an unregulated subsidiary of DTE EnergyCo., reached a distribution agreement with Waukesha, WI- basedGENERAC Power Systems, a manufacturer of prepackaged standby powersystems for homes and small businesses.

Marking the continuation of a successful 1999 strategy, EnronEnergy Services (EES), a subsidiary of Enron Corp., announcedyesterday it has signed the Chase Manhattan Corp. to a 10-year,$750 million energy management agreement.

Thanks to a new deal with CMS Energy’s Panhandle EasternPipeline Co., three FirstEnergy gas turbines in Defiance, OH, willenjoy a 15-year supply of gas. The agreement makes FirstEnergyPanhandle’s seventh power plant customer.

Thanks to a new deal with CMS Energy’s Panhandle EasternPipeline Co., three FirstEnergy gas turbines in Defiance, OH, willenjoy a 15-year supply of gas. The agreement, announced yesterday,makes FirstEnergy Panhandle’s seventh power plant customer. Neitherthe volumes nor the financial terms of the transaction weredisclosed.

One of the nation’s largest and fastest growing municipalutilities, the Sacramento Municipal Utility District (SMUD) Tuesdaysigned a multi-million-dollar five-year deal for 150 MW ofpurchased power from Calpine Corp. Terms of the agreement werebeing kept confidential. The deal starts in the summer of 2001when Calpine’s first new natural gas-fired merchant generationplants in Sutter County begins operations about 50 miles north ofSacramento in northern California. Now under construction, theSutter plant is the first of a series that Calpine and othermerchant generators are planning to build in California over thenext five to ten years.

The Maritimes & Northeast Pipeline overcame a significantpolitical hurdle last week, signing an agreement with protestingNova Scotia Indians that smoothes the way for deliveries of 450MMcf/d of Sable Island gas to begin by the end of the year. Theagreement with the Assembly of the Nova Scotia Mi’kmaq Chiefscovers a wide variety of environmental and socio-economic programsgiving native Indians a head start on industry-related jobs andtraining and ensures that Indians on a Mi’kmaq reserve will be thefirst Atlantic Canadians to receive gas. The National Energy Boardadded its final stamp of approval.

Although no gas is flowing from the Sable Offshore EnergyProject to markets in Maritimes Canada and New England, theMaritimes & Northeast Pipeline crossed a significant politicalhurdle yesterday that smoothes the way for eventual service. Itsigned an agreement with the Assembly of the Nova Scotia Mi’kmaqChiefs covering a wide variety of environmental and socio-economicmatters. Financial details of the agreement were not released, butthe Indians had been demanding about $98 million, according todocuments filed with the National Energy Board. Pipeline officialsdid say they have agreed to contribute funds for a number ofpipeline monitoring and educational activities. They also haveagreed to give the Indians 5% of the project work done in theprovince.