Pact

Sempra Energy Resources, the wholesale power-generation subsidiary of Sempra Energy, today signed a 10-year agreement potentially worth $7 billion with the California Department of Water Resources (CDWR) to supply up to 1,900 MW of electricity to the state.

The trappings of a major press conference made it appear like a long-sought ending, but it was really just the beginning late Monday afternoon when California’s governor and Southern California Edison’s CEO announced a breakthrough after six weeks of talks. The “memorandum of understanding” (MOU) for the sale of Edison’s transmission system and power production to the state is contingent on state regulators and legislators swiftly completing some equally significant steps.

After months of inconclusive sparring, TransCanada PipeLinesLtd. and its shippers have reached a truce by agreeing to negotiaterather than fight over ways to adapt to the onset of competition inCanadian natural-gas transportation.

Shell Energy will be selling gas to Georgia retail customersthrough Essential.com, according to a partnership the two companiesannounced yesterday. Essential.com already provides a one-stop shopfor a broad range of energy and communications services.

Maine Natural Gas (MNG) has signed a multi-year contract thatwill guarantee gas service to the Mid-Coast region of Maine. MNG, ajoint venture formed by CMP Group and Energy East, signed anagreement with the Federal Government to provide natural gastransportation to the Brunswick Naval Air Station located inBrunswick.

TXU Energy Services has won a five-year $500 million deal toprovide energy services to 85 of Crescent Real Estate commercialoffices nationwide. Cresent is one of the country’s largest realestate investment trusts.

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.

Avista Corp. affiliate Avista Power and STEAG AG, Germany’slargest independent power producer agreed to form a joint ventureto develop, build and/or buy electric generation assets throughoutNorth America. Initial regions of interest include the Northwest,the Southwest and the Southeast. Projects of interest include thosepowered by natural gas, coal and hydro.

Avista Corp.’s Internet specialty billing and informationservices affiliate, Avista Advantage, and Texas-based ReliantEnergy have made a product distribution agreement.