power

TNP Enterprises, the parent company of Texas-New Mexico PowerCo. (TNMP), was bought by a group of investors headed by WilliamCatacosinos, the former CEO of Long Island Lighting Co., for $1billion, including assumed debt, the parties announced yesterday.The deal, which TNP said was the first leveraged buyout of anelectric utility, is expected to close in six to nine months.

The merger of New Century Energies and Northern States Powerappears to be moving faster than expected. The companies announcedplans yesterday to hold their special shareholder meetings toapprove the merger in late June rather than in September. Theproposed merger requires shareholder approval as well as approvalor regulatory review by various federal and state agencies. Whencompleted the merged company will serve 3 million electricitycustomers and 1.5 million natural gas customers in 12 U.S. states.

The Oklahoma Corporation Commission (OCC) unanimously approvedthe proposed merger of American Electric Power Co. of Columbus, OH,and Dallas-based Central and South West Corp.

The Palmetto Pipeline, a proposed joint venture between CarolinaPower & Light (CP&L) and Sonat, announced an open seasonMonday seeking interest from potential firm gas transportationservice customers for terms of at least 20 years. The open seasonbegan April 1 and will continue through May 31.

Carolina Power &amp Light announced it is considering sites inRichmond and Rowan counties, NC, for new natural gas-fired electricgeneration to be operational in 2001 and 2002. CP&ampL plans tobuild up to seven combustion turbine units totaling about 1,100 MWto be operational by June 2001 and may build additional units to bein service in June 2002. The projects are part of CP&ampL’spreviously announced generation expansion of about 4,000 MW, or40%, by 2007. Each combustion turbine unit represents a capitalinvestment of about $40 million. Construction is scheduled to beginby the end of 1999. CP&ampL also is building additional peakinggeneration at two existing plant sites-in Wayne and Buncombecounties-and has broken ground on a 160 MW gas-fired peaking plantin Monroe, GA. Natural gas to fuel a plant in Richmond County wouldcome through North Carolina Natural’s (NCNG) pipeline andTranscontinental Gas. Last November, CP&ampL announced its plan toacquire NCNG and to make it a wholly owned subsidiary. CP&ampLanticipates receiving regulatory approval for the acquisition bymid-1999.

Unicom Corp.’s 2,698 MW Collins gas-fired power station could goup for sale as well as 1,396 MW of peaking units. A sale of theplants would mark the company’s exit from non-nuclear generation.As of Nov. 29, the gas plants burned nearly 45 million Btu of gassince the first of the year, a spokeswoman said.

With its California power marketing arrangement with Enron nowhistory, Amway Corp. has hooked up with Columbia Energy, asubsidiary of Columbia Energy Group, to market gas and electricityto residential and small business users, first in Georgia and thennationwide. The deal potentially could add more than 1.3 millionretail energy buyers across the country to Columbia’s already largeenergy customer base of 100,000 in seven states.

With its California power marketing arrangement with Enron nowhistory, Amway Corp. has hooked up with Columbia Energy, asubsidiary of Columbia Energy Group, to market gas and electricityto residential and small business users, first in Georgia and thennationwide.

Electric power and business interests throughout California arehailing the overwhelming voter rejection of Prop 9 (72%-28%), theelectric reform initiative that would have crippled California’scomplex pioneering effort at creating a competitive electricitymarket. Similar reactions were echoed on the East Coast whereQuestion 4 in Massachusetts was passed by voters, sustaining itsongoing electricity competition.