Promise

Dynegy is making a reality of its promise to increase its powerasset portfolio in the Southeast by announcing construction plansfor two separate 500 MW facilities in the past seven days. Lastweek, Dynegy announced a local commission approved plans toconstruct a plant in Heard County, GA. Yesterday, the company saidit gained approval from a local court to build the BluegrassGeneration facility in Oldham County, KY. With the Kentuckyfacility, Dynegy will own or have interest in five power plants inthe Southeast.

The jury is still out, but initial word from the MineralsManagement Service (MMS) on royalty in kind (RIK) pilots is RIKcould work for some gas and oil leases

The jury is still out, but initial word from the Minerals Management Service (MMS) on royalty in-kind (RIK) pilots is RIK could work for some gas and oil leases.

Major gas producers said they were “encouraged” by FERC’sproposals to remove the price caps on capacity in the short-termmarket and to give pipelines the authority to negotiate terms andconditions of service subject to certain restrictions.

Columbia Gas Transmission and Columbia Gulf Transmissionyesterday followed through on a long-standing promise to provideFERC with some new regulatory ideas in the area of negotiated termsand conditions of service. The transmission subsidiaries ofColumbia Energy filed a proposal to establish a new regulatorymodel called Standard/Customized services. Columbia said it’s the”next logical step in the evolution of pipeline regulation andnatural gas markets.”

The promise of retail energy marketing, but probably not thecurrent results, seems to be providing enough support to the gasand power marketing community that few have decided to exit thebusiness, according to the results of Benjamin Schlesinger andAssociates’ 12th edition of its Directory of Energy MarketingService Companies.

With all regulatory approvals in place at both Federal andProvincial levels, sponsors of the Sable Island Offshore EnergyProject last week signed both their key commercial agreements andthe Facilities Alliance Agreement to engineer, construct andinstall production and gathering facilities to handle delivery of 3.5 Tcf of gas from offshore Nova Scotia. This formally commits theowners to the $2 billion first phase, which will deliver the firstgas in late 1999.