Released

American Electric Power released its 2000 earnings Tuesday,which were lower than last year’s due to extraordinary costsincluding the completion of its merger with Central and South WestCorp. The company posted net income after extraordinary costs of$596 million ($1.85 per share), a decline from 1999’s level of $972million ($3.03 per share).

The Department of Energy’s National Energy Technology Laboratory(NETL) through its Strategic Center for Natural Gas released asolicitation for proposals to improve the reliability of thenation’s natural gas infrastructure. NETL expects to fund researchand development projects totaling up to $10 million over athree-year period through this solicitation. Multiple awards areanticipated with industrial participants expected to contribute atleast 35% of each selected project’s cost. The proposals are due byJan. 9, 2001. The solicitation is available at the NETL web sitehttp://www.netl.doe.gov/business/solicit/index.html . For moreinformation, contact David J. Anna, (412) 386-4646, or e-mail:anna@netl.doe.gov .

More natural gas transportation and storage capacity is on theway in Alabama as Bay Gas Storage Co. Ltd. released its plans for a24-inch pipeline in Mobile County which began construction in lateNovember. The EnergySouth subsidiary also has an additional saltdome storage cavern under construction.

Fueled by a record-setting storage withdrawal released yesterdayand revised outlooks by both private and governmental weatherforecasters, natural gas futures rocketed higher yesterday toeasily notch new all-time highs.

The Energy Information Administration (EIA) released a handy newbrochure yesterday for residential customers who are wondering whytheir natural gas bills are expected to soar by 44% this wintercompared to last winter. Gas supply will be adequate to meet demandthis winter, according to EIA, but prices and gas usage are goingto increase substantially.

More natural gas transportation and storage capacity is on theway in Alabama as Bay Gas Storage Co. Ltd. released its plans forconstruction of a 24-inch pipeline in Mobile County which willcommence before the month is finished. The EnergySouth subsidiaryalso has an additional salt dome storage cavern under construction.

Powder River Basin gas producers may be about to get a moredirect route to Midwest markets. Northern Border Pipeline hasreleased plans to build a new 325-mile greenfield pipeline fromMcCabe, MT, to Gillette, WY, to tap the rapidly growing productionin the Powder River, which is estimated to hold between 10 and 30Tcf of gas.

Powder River Basin gas producers may be about to get a moredirect route to Midwest markets. Northern Border Pipeline hasreleased plans to build a new 325-mile greenfield pipeline fromMcCabe, MT, to Gillette, WY, to tap the rapidly growing productionin the Powder River, which is estimated to hold between 10 and 30Tcf of gas.

Armed with a “smoking gun” discovered in just-released data, theCalifornia Public Utilities Commission (CPUC) has launched a freshoffensive against El Paso Natural Gas’ 1.22 Bcf/d transportationcontract arrangement with affiliate El Paso Merchant Energy.