Purchase

Duke Energy International, LLC (DEI) acquired Broken HillProprietary Company Ltd.’s power business (BHP Power) for $315million. The purchase will establish DEI as an industrial energyfacility operator in the emerging competitive Australianelectricity market.

AEP Resources Inc., a wholly owned subsidiary of AmericanElectric Power, completed the purchase of the midstream gasoperations of Equitable Resources Inc.

Illinova Energy Partners, one of the top-30 largest powermarketing operations in the nation, grabbed a foothold in theMichigan retail gas and power market with the purchase of EMC GasTransmission Co. Terms of the merger were not disclosed.

PP&L Resources Inc. announced that it acquired Penn FuelGas, a gas distributor and storage company, in a stock transactionvalued at $133 million. The purchase was the latest step by theutility company to diversify its portfolio of energy products andservices, said PP&L Resources President William F. Hecht.

Tesoro E&P Company L.P., a wholly-owned affiliate of TesoroPetroleum Corp., announced earlier this week it purchased a 50%working interest from Sheridan Energy in the Stiles Ranch Fieldnorth of Amarillo, TX.

CMS Energy would boost its presence in the Midcontinent with thepurchase of Continental Natural Gas for $155 million. The companiesagreed for CMS to acquire 100% of Continental’s common stock andassume Continental debt. The deal is worth about $90 million indebt and $65 million in equity for an approximate total value of$155 million. The agreement is subject to Continental shareholderapproval, and majority shareholders have said they favor it.Closing is expected early in the fourth quarter.

Houston Industries Power Generation, a subsidiary of HoustonIndustries, signed an option agreement to purchase a 33-acre sitefrom the R.I. Resource Recovery Corp. This site is the planned home for RI Hope Energy, a 500 MW merchant plant to servederegulated wholesale markets in Rhode Island and New England. RIHope Energy will be in an industrial park currently being developedby RIRRC in Johnston, RI.