Mounting

Frustrated by its inability to attract investors because theyview it as a stodgy utility, Southern Company last week announced amakeover in the form of a spin-off and IPO to create a separatecompany for most of its non-utility businesses.

In a move to attract investors, Southern Company plans to createa separate company for most of its non-utility businesses, sell19.9% of the company to the public through an initial publicoffering and spin the rest off to shareholders.

As construction begins on Alliance Pipeline, Canadiannatural-gas producers are mounting aggressive northern drillingcampaigns to fill up the added export capacity when it goes intoservice in October of 2000. Northeastern British Columbia, thestarting point for Alliance’s 2,320-mile route to Chicago, hasemerged as an E&ampP hot spot.

Trigen Energy announced it is mounting a legal battle to forcePECO Energy to honor terms of a Gray’s Ferry power purchaseagreement. Trigen said the Grays Ferry Cogeneration Partnershipreceived a letter from PECO saying the Pennsylvania utility couldnot pay the full contract price for electricity from the 150 MWcogeneration plant. The plant sells electricity to PECO and steamto Trigen-Philadelphia Energy. It is located in Philadelphia andwent into commercial operation earlier this year. Ironically,Exelon, a wholly owned subsidiary of PECO Energy, is a one-thirdowner in the project with Trigen and NRG Generating.