Million

Sierra Pacific Resources Co. wants to build a $300 million highcapacity transmission project to serve the growing population insouthern Nevada. The 500-kilovolt transmission project wouldprovide about 3,000 MW of generating capacity now proposed near LasVegas, with completion by 2003.

TXU Energy Services has signed a three- year, $100 million-pluscomprehensive energy management contract with Bass Hotels &Resorts, a subsidiary of Bass PLC, to provide natural gas, electricand risk management services, develop energy-efficiency improvementprojects and provide consolidated billing services.

Louis Dreyfus Natural Gas Corp. has announced a 23% increase inreserves, to 1.8 Tcf equivalent in 2000, including 1.6 Tcf ofnatural gas and 33 million barrels of crude oil. The year-endpresent value, discounted at 10%, of estimated future net revenuesfrom proved reserves was $3.7 billion, a $2.7 billion increase overthe prior year-end reserve value. Drilling and acquisitionactivities added 479 Bcfe or 350% of production. Proved reserveadditions from drilling were 275 Bcfe, which replaced over 200% ofproduction at an estimated finding cost of $.87 per Mcfe, andproved reserve acquisitions added 204 Bcfe at a cost of $.82 perMcfe. Louis Dreyfus drilled 461 wells in 2000, with an overallsuccess rate of 93%.

Panda Energy International announced that it will build a $400million natural gas fired electric power plant in West Point, MS.The 1,300 MW Panda Black Prairie Project is expected to be incommercial service in 2004. “This is an excellent location for apower plant,”stated Garry Hubbard, Panda’s senior vice president ofdevelopment. “There is immediate access to electric transmissionfacilities and we are close to water and natural gas. Thiscombination will play a key role in helping us meet the energyneeds of the state.”

In response to Hunt Oil Co.’s unsolicited C$1.03 billion (US$710million) offer to buy Berkley Petroleum last week, Berkley announcedthat it has put together a special committee of independent members ofthe board to consider alternatives to the takeover offer itcategorized as “opportunistic and inadequate” (see Daily GPI, Dec. 29).

Consistent with both companies’ strategies for the future, NRGEnergy Inc. announced it would pay $325 million to Wisconsin EnergyCorp. for two Connecticut coal-fired power stations. NRG said theacquisition would help it maintain and develop a “top-threeposition in the Northeast,” while Wisconsin Energy said it wouldfocus its energy projects in the Midwest.

Edison International has eliminated its fourth quarter dividendand subsidiary Southern California Edison has dropped $100 millionin electric system operations and maintenance investments affecting400 jobs to help ease its financial crisis.

Conoco subsidiary, Conoco Global Power (CGP) is selling a 50%stake in SRW Cogeneration Ltd. Partnership to subsidiaries of NRGEnergy. Currently, the partnership owns, and will operate a $260million power facility near Orange, TX, now under construction.

Williams was selected last week by a consortium of deep-waterGulf of Mexico producers to handle about 500 MMcf/d of gasproduction that is scheduled to come on stream in mid-2002. Toaccommodate the projected volumes, Williams will build, operate andown the Canyon Station, a production handling platform in the EastMain Pass area south of Mobile Bay.