Operations

PG&E Gas Transmission-Northwest now expects Unit 5-C toreturn to service for June 1 operations, raising Kingsgate capacityto 2,360 MMcf/d. The return of Unit 7-C is scheduled for June 10,with Kingsgate reaching 2,520 MMcf/d.

CMS Energy Corp. added to its retail energy marketing businessMonday by purchasing the western Pennsylvania natural gas marketingassets of Enerval, L.L.C., an energy marketing firm with more than250 commercial and industrial customers in that region. Enerval isan indirect subsidiary of Conectiv, the holding company formed inMarch 1998 through the merger of Atlantic City Electric andDelmarva Power and Light. Terms of the purchase were not disclosed.

Sempra Energy now has three start-up gas distribution operationsin development or in planning stages in North America with theannouncement yesterday that it will compete for gas distributionfranchise rights in Nova Scotia. The company said it intends tofile an application with the Nova Scotia Utilities and Review Boardto build a gas distribution system capable of serving all areas ofthe province. Nova Scotia has a population of about 900,000. Sempraexpects to hire local contractors and workers to build the newdistribution company, called Sempra Atlantic Gas, which willdeliver production from the Sable Island Offshore Energy Projectstarting next fall.

Dynegy Inc. said yesterday it is combining its power generationoperations with its trading and marketing organization to “furtherdefine and capture opportunities presented by the convergence ofthe gas and power industries.” The new organization will operateunder the name Dynegy Marketing and Trade. Steve Bergstrom willserve as president and chief operating officer.

Nine months after acquiring MidCon Corp., KN Energy citedimprovements in all areas of operations and reported a markedincrease in earnings for the first three quarters of 1998.

Tulsa-based Parker Drilling Company with worldwide drillingoperations, and Superior Energy Services, which provides servicesin the Gulf of Mexico, have announced a definitive agreement tomerge in a transaction valued at approximately $168 million.

Illinova Energy Partners, one of the top-30 largest powermarketing operations in the nation, grabbed a foothold in theMichigan retail gas and power market with the purchase of EMC GasTransmission Co. Terms of the merger were not disclosed.

Kerr-McGee Corp. yesterday joined a growing number of companies,including ARCO, Unocal and Occidental Petroleum, that plan torestructure or reduce workforces because of the depressed oilmarket. Kerr-McGee said it plans to layoff about 70 workers,reducing its Oklahoma City metropolitan area workforce by 7% andits exploration and production company staff by a similar amount.The company, which has $3.7 billion in assets and had already shedits coal businesses this year, said the restructuring is designedto save 20% of annual overhead cost, or about $18 million.

A wholly owned subsidiary of Potomac Electric Power Co. (Pepco)has purchased the assets and operations of a Maryland-based gasretail marketing firm for an undisclosed amount. The transactiongives Pepco through its subsidiary, Pepco Services, the capabilityto offer for the first time natural gas to its commercial,institutional and industrial customers.