Pending

Preparing for the advent of electric industry restructuring inNevada and another pending merger with Portland General, SierraPacific Resources’ two Nevada power utilities have begun theprocess of selling off nearly a billion dollars of fossil-fuelgeneration plants in a two phase auction seeking preliminary,nonbinding bids by next month. Book value collectively is “justunder $1 billion,” a Sierra Pacific spokesperson said.

In the wake of spiraling heating oil prices, Commissioner CurtHebert Jr. last week challenged his FERC colleagues to follow inthe Clinton administration’s footsteps to help reduce theNortheast’s dependence on the higher-priced fuel. ATranscontinental Gas Pipe Line official made a similar pitch toremove regulatory roadblocks to new natural gas pipelineconstruction last week at a Senate hearing.

The pending merger of American Electric Power (AEP) of Columbus,OH, and Central and South West Corp. of Dallas, TX, receivedantitrust clearance from the Department of Justice. Approvals thatremain include the Federal Energy Regulatory Commission (FERC), theFederal Communications Commission (FCC) and the Securities andExchange Commission (SEC). Upon completion of the merger, the newcompany will be called American Electric Power.

Alaska’s North Slope area-wide 2000 lease sale has been put onhold due to the pending merger of BP Amoco and Atlantic RichfieldCo. (ARCO). Alaska Department of Natural Resources CommissionerJohn Shively said, “[T]here are too many uncertainties in futureleaseholdings to proceed with a sale at this time. Until theiraggregate onshore holdings have been reduced to 500,000 acres, asrequired by Alaska law, I believe it will be difficult forprospective bidders to properly evaluate oil and gas opportunitieson the lands we can offer. “Should the merger be finalized by theend of the year, BP-Amoco must make their seismic and well dataavailable for purchase by the end of March. These data shouldincrease the interest in state lease sales. We are tentativelyrescheduling the North Slope sale for late October or earlyNovember of 2000, at which time we intend to include with it thepostponed Beaufort Sea area-wide sale.” The North Slope saleincludes all available state acreage lying north of the UmiatMeridian, between the NPRA and ANWR.

Alaska’s North Slope area-wide 2000 lease sale has been put onhold due to the pending merger of BP Amoco and Atlantic RichfieldCo. (ARCO). Alaska Department of Natural Resources CommissionerJohn Shively said, “[T]here are too many uncertainties in futureleaseholdings to proceed with a sale at this time. Until theiraggregate onshore holdings have been reduced to 500,000 acres, asrequired by Alaska law, I believe it will be difficult forprospective bidders to properly evaluate oil and gas opportunitieson the lands we can offer. “Should the merger be finalized by theend of the year, BP-Amoco must make their seismic and well dataavailable for purchase by the end of March. These data shouldincrease the interest in state lease sales. We are tentativelyrescheduling the North Slope sale for late October or earlyNovember of 2000, at which time we intend to include with it thepostponed Beaufort Sea area-wide sale.” The North Slope saleincludes all available state acreage lying north of the UmiatMeridian, between the NPRA and ANWR.

The proposed Independence Pipeline and MarketLink expansion -the two most controversial pipeline projects pending before FERC -have won final environmental clearance, which virtually cinchestheir approval at the Commission. Last March FERC assured sponsorsit would act on these two projects, as well as the proposedMillennium Pipeline, during its fall session. Both Independence andMarketLink are on the docket for FERC’s regular meeting next week.

About 20,000 Natrogas Inc. gas and propane customers in fourstates will be added to Northern States Power Co.’s (NSP) utilitybusiness pending regulatory approval of a merger announcedyesterday.

AmerGen Energy Co. agreed to buy Illinois Power Co.’s Clinton(IL) Power Station pending regulatory approval. The agreement tosell the nuclear station moves Illinois Power parent Illinova Corp.closer to meeting a condition of its recently announced merger withDynegy Inc.

Oklahoma producers are eyeing the pending purchase of Shellsubsidiary Transok by OGE Energy subsidiary Enogex with cautiouslyoptimistic eyes. While the sale would double Enogex’s pipelineholdings, it’s not clear to Oklahoma market participants whateffect the deal will have on competition.