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Alaska Gov. Tony Knowles and BP Amoco signed a major agreementyesterday that not only clears the way in Alaska for the oilgiant’s proposed acquisition of Atlantic Richfield Co., but mayhelp the company score some points with the Federal TradeCommission (FTC). At least that’s what BP Amoco officials arehoping.

Not only did FERC yesterday find that El Paso Natural Gas’controversial methods for allocating capacity at delivery points”may be unjust and unreasonable,” but it expanded the scope of thereview to include the pipeline’s allocation methods and poolingprocedures at all of its receipt points.

Enron’s days as an electric utility are coming to an end. Afteronly two years of owning Oregon-based Portland General Electric(PGE), Enron has decided to part with the company for a small gainthrough a sale to fellow western utility Sierra Pacific Resources.

FERC last week accepted the $34.5 million mega-negotiatedcontract between Natural Gas Pipeline Co. of America (NGPL) andAquila Energy Marketing Corp., but there was a glitch. TheCommission’s acceptance was conditioned on the Midwest pipelineproviding a “satisfactory explanation” of why the transactiondoesn’t conflict with capacity-release rules and regulations, whichFERC suspects is the case.

Computers, their manufacture and use, the Internet and the rapidgrowth of the nation’s communications infrastructure are not onlyrevolutionizing the energy industry, they’re fueling demand forelectricity and will continue to do so, according to Enron CEOKenneth L. Lay.

Deep-water gas production reached 560 MMcf/d in 1998 from only381 MMcf/d the year prior, a 47% increase, according to datareleased yesterday by the Mineral Management Service (MMS). Another311.5 MMcf/d of deep-water gas production is expected to come online this year.

Only two-years after winning its hard-fought battle to acquire Portland General Electric, Enron Corp. President Jeffrey K. Skilling last week said the company is considering “alternatives” for the electric utility.

According to a recent survey, one in six U.S. consumers, or 17%,say they can now choose their energy suppliers. However, only 2%have actually changed providers.

Yesterday’s Western Gulf of Mexico Lease Sale 174 brought inonly about one-sixth the amount of high bids the previous westernGulf sale garnered last year; however, a spokeswoman for oneindustry group downplayed the lackluster results.