Public

WPS Energy Services, Inc., a subsidiary of WPS Resources Corp.,announced today that it has filed an application with the MichiganPublic Service Commission (MPSC) to build a 3 Bcf capacity naturalgas storage field near Port Huron, MI. The storage facility will belocated near major natural gas pipelines, including: Great LakesGas Transmission, MCN Energy Pipeline and Processing, CMS GasTransmission and Storage, and Vector Pipeline which is slated forOctober 2000 start-up. The facility is also located near thenatural gas trading hub of Dawn in Ontario, Canada.

Public Service Co. of Colorado and Cheyenne (WY) Light Fuel andPower will continue to refuse imbalance payback gas at leastthrough today’s gas day. If operational constraints from warmregional weather continue, the two utilities said, the paybackrestriction will be extended.

Northwest Natural Gas Co. reported that the Oregon PublicUtility Commission (OPUC), in an order issued Nov. 12, authorized anet revenue increase from NW Natural’s Oregon operations of $0.2million/year. The revenue increase will come from rate increasesaveraging about 1.3% for Oregon residential customers, partiallyoffset by rate decreases for certain commercial and largeindustrial customers.

Staff of the Maine Public Utilities Commission (PUC) recommendCMP Natural Gas (CMPNG) be allowed to serve “un-served” areas ofGorham and Westbrook, ME, as well as serve Calpine’s proposed540-megawatt gas-fired power plant in Westbrook. Last July, CMPNGand Calpine signed a long-term contract to provide gas deliveryservice contingent upon PUC approval. Construction of Calpine’s$200 million electric generating facility is under way and willrequire gas service by June 1.

Preparing for the potential inability of Peachtree Natural Gasto reliably supply gas, the Georgia Public Service Commission(GPSC) decided to issue an RFP yesterday for any marketer who wouldwant to be an interim pooler and accumulate some or all ofPeachtree’s 177,000 customers. The RFP is scheduled to concludetoday.

In an ongoing effort to reduce power costs from existing PublicUtilities Regulatory Policy Act (PURPA) contracts, Puget SoundEnergy announced yesterday an agreement to buy a 160 MW gas-firedcogeneration plant in Bellingham, WA, from Encogen for $164million. Puget Sound said buying the facility eliminated its secondlargest PURPA contract, a deal which required it to pay Encogenfixed and escalating fees through mid-2008 for the plant’s output.

Pinnacle West Capital Corp., the holding company for ArizonaPublic Service and 30% owner of the Palo Verde Nuclear GeneratingStation, is making the leap into natural gas in a big way,developing one of the largest gas-fired electric generatingfacilities alongside its Palo Verde switchyard.

After having been told to drop dead by Texaco in a publicstatement released in June, Chevron now apparently is courtingPhillips Petroleum, a smaller prize but still a significantconsolation if accomplished. Reports surfaced over the weekend inthe British Sunday Times in London that Chevron was willing to paya 20% premium and that triggered a 5% spike in Phillips shareprices yesterday. The companies would neither confirm nor deny therumors, but Phillips shares closed up $2.81 yesterday at $56.56,well above its 52-week high. A 20% premium would put the purchaseprice near $17.2 billion. Chevron stock, meanwhile, took a slight88-cent dip yesterday to $92.12/share.

Pennsylvania Governor Tom Ridge nominated Republican utilitylawyer Terrance J. Fitzpatrick to replace David W. Rolka on thePennsylvania Public Utility Commission. “He is a common-senseenvironmentalist with a rich breadth of experience in energy andutility law and policy,” Ridge said in a statement. As a lawyer,Fitzpatrick has represented GPU Energy, owner of the Three MileIsland nuclear plant