Partnership

Tenaska Alabama Partners LP said last week it executed a fuelconversion services agreement with Williams’ energy marketing andtrading unit for the entire electrical production of the plannedTenaska Lindsay Hill generating station. Under the long-termservice agreement, the Tenaska facility will convert fuel owned andsupplied by Williams into electricity, which will be marketed byWilliams throughout the Southeast region’s wholesale power market.Terms of the agreement were not disclosed.

Tenaska Alabama Partners LP announced it has executed a fuelconversion services agreement with Williams’ energy marketing andtrading unit for the entire electrical production of the plannedTenaska Lindsay Hill generating station. Under the long-termservice agreement, the Tenaska facility will convert fuel owned andsupplied by Williams into electricity, which will be marketed byWilliams throughout the Southeast region’s wholesale power market.Both companies would not disclose the terms of the agreement or theprojected amount of gas the facility will consume.

Strong and growing interest in LNG importation spurred ColumbiaLNG Corp. to go ahead and buy the other half of the Cove Point LNGLimited Partnership it did not already own from Potomac ElectricPower Co. unregulated subsidiary Potomac Capital Investment Corp.

Williams Gas Pipeline snagged Duke Energy’s 9.8% stake in theAlliance Pipeline partnership last week, bringing its totalinterest in Alliance to 14.6%. Transaction details, including shareand unit prices, were not disclosed.

MCN Energy Group Inc. completed the previously announced sale ofits share of the Midland Cogeneration Venture Limited Partnership(MCV) in Michigan. Subsidiaries of Coastal bought MCN’s 23% interestin MCV for an undisclosed amount said to be near book value. MCV wasdesignated as a Qualifying Facility (QF) under the federal PublicUtility Regulatory Policies Act of 1978, or PURPA. PURPA requiresutilities to purchase power from QFs at the utilities’ avoided cost ofproducing power. MCN is selling its interests in three other QFs inanticipation of its pending merger with DTE Energy Co. (see Daily GPI,Oct. 6).

Williams Gas Pipeline snagged Duke Energy’s 9.8% stake in theAlliance Pipeline partnership yesterday. The transaction bringsWilliams’ total interest in Alliance to 14.6%. Transaction details,including share and unit prices, were not disclosed.

Guardian Pipeline filed with the FERC for a certificate toconstruct, own and operate its proposed 149-mile pipeline. Thepartnership is made up of three midwestern energy companies-CMSEnergy of Dearborn, MI; WICOR of Milwaukee, WI; and Viking Gas, awholly owned subsidiary of Northern States Power Co. of St. Paul,MN.

Now turning its acquisitive eye to Kansas, Midcoast Energy Resources Inc. plans to acquire Kansas Pipeline Co. (KPC), MarGasCo Partnership (MarGasCo) and other related assets.

Midcoast Energy Resources Inc. plans to acquire Kansas PipelineCo. (KPC), MarGasCo Partnership (MarGasCo) and other relatedentities. The $190 million deal includes the Kansas Pipelinesystem, which provides gas service to the Wichita and Kansas Citymetropolitan markets. The addition of the KPC system represents a41% increase in the total miles of pipeline owned by Midcoast.