Planned

Significant changes to Enron’s corporate structure, includingthe sale of Enron Oil & Gas and planned divestiture of PortlandGeneral Electric, made the headlines in 1999, but its traditionaloperations more than carried the company flag. Enron posted awhopping 37% increase in net income to $957 million and an 18% risein earnings per share to $1.18 for the year. Its revenues rose 28%to $40 billion and its marketed volumes jumped 19% to 32 trillionBtue/d. North American gas sales volumes reached 13 Bcf/d up from10.6 Bcf/d while U.S. power sales fell slightly to 380.5 millionMWh from 401.8 million MWh in 1998.

Northern Natural said the 89 Mitchell CO2 outlet will be out forgas days Nov. 30 through Dec. 1 for planned pipeline maintenanceaffecting 80,000 MMBtu/d. Mitchell plant volumes will be at zeroduring the period.

While it won’t get there for a while, gas is on its way toWarren County, NC. Frontier Energy, a subsidiary of Sempra Energy,this week is beginning construction of its planned Warren Countydistribution system and touted gas’ role in the area’s economicrevitalization. The Warren County pipeline is part of a $55 milliondistribution system being built by Frontier to serve residents andbusinesses in seven northwestern North Carolina counties.

El Paso Energy is making its first entry into the Nevada powermarket with its planned acquisition of Bonneville Pacific Corp. for$63 million. The deal includes a 50% interest, through BonnevilleNevada Corp., of Nevada Cogeneration Associates No. 1 (GarnetValley), an 85 MW power plant that sells power to Nevada Power Co.under a long-term contract. Texaco owns the other 50% of the plant.

Koch Gateway has planned maintenance for today and Friday forits Index 129 segment (West 30-inch mainline in East Texas). Exceptfor gas received and delivered south of Mile Post 98.33 (Koch’sColorado River crossing near the Wharton/Fort Bend County line),all other receipts south of 98.33 will be scheduled to zero.However, at shippers’ request, up to a total of 233,000 MMBtu/d ofdeliveries (the pipeline’s total firm obligation from the area)will be kept whole.

As the list of planned new natural gas-fired power plants inCalifornia lengthens, state officials have begun to survey thedeliverability of resources to fuel those plants.

As the list of planned new natural gas-fired power plants inCalifornia lengthens, state officials have begun to survey thedeliverability of resources to fuel those plants.

MCN Energy followed through as planned on the previously announcedsales of its Midcontinent/Gulf Coast exploration and production(E&P) properties and subsidiaries. Undisclosed privately heldcompanies paid about $105 million for the assets, which are primarilylocated in Texas and Oklahoma. Proceeds from the sales will helpstrengthen MCN’s balance sheet by reducing its debt. At year-end 1998,these Midcontinent/Gulf Coast assets represented 144 Bcfe of reserves,or 12% of the 1.2 Tcfe of proved reserves on MCN’s books. About 80% ofthe reserves sold were gas. MCN announced earlier in August that,consistent with its new regional, operating strategy, the company willretain its natural gas producing properties in Michigan (see Daily GPIAug. 3). Negotiations continue on theremaining Appalachian E&P package.

In the first of a planned series of legislative hearings, Houselawmakers on the energy and power subcommittee acknowledgedyesterday that for the first time in a couple of years they werestarting to see a light at the end of tunnel on electricityrestructuring.