It will be a busy day for Georgia’s gas industry today as twoseparate meetings are being held which promise to go a long way indetermining the fate of the bankrupt Peachtree Natural Gas’ 170,000customers.
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CA Governor Signs Law to Restrict Unbundling
California Gov. Gray Davis has signed a bill severely limitingthe future of retail gas unbundling in the state, keeping it on aseparate, more restricted track than electricity. AB 1421 replacesa one-year ban on further gas unbundling passed last year by thestate legislature. The measure was strongly backed byinvestor-owned utilities and utility unions.
CA Governor Signs Law to Restrict Unbundling
California Gov. Gray Davis has signed a bill severely limitingthe future of retail gas unbundling in the state, keeping it on aseparate, more restricted track than electricity. AB 1421 replacesa one-year ban on further gas unbundling passed last year by thestate legislature. The measure was strongly backed byinvestor-owned utilities and utility unions (see Daily GPI, Sept.13).
UtiliCorp Selling West VA Power Division
UtiliCorp United agreed to sell its West Virginia Power divisionto Allegheny Energy Inc. for $75 million in cash. In addition,separate transactions include a 20-year supply agreement forUtiliCorp’s Aquila Energy unit to provide gas to Allegheny, and anagreement for Allegheny to purchase Appalachian Electric Heating,UtiliCorp’s heating and air conditioning service operations in WestVirginia. A spokesman said details of the gas supply and otheragreements are confidential.
UtiliCorp Selling West VA Power Division
UtiliCorp United agreed to sell its West Virginia Power divisionto Allegheny Energy Inc. for $75 million in cash. In addition,separate transactions include a 20-year supply agreement forUtiliCorp’s Aquila Energy unit to provide gas to Allegheny, and anagreement for Allegheny to purchase Appalachian Electric Heating,UtiliCorp’s heating and air conditioning service operations in WestVirginia. A spokesman said details of the gas supply and otheragreements are confidential.
Industry Briefs
Nevada Energy Inc. signed an offer to purchase from ConsolidatedBeacon Resources Ltd. two separate onshore exploration agreementscovering a combined total area of about 82,000 net hectaresnorthwest of Truro, Nova Scotia. Nevada will have a 75% workinginterest in 27,970 gross hectares and a 100% working interest in60,936 gross hectares and will be the operator. The agreementsrequire the operator to expend capital to fulfil the earningrequirements under the terms of the work programs as required bythe Nova Scotia Petroleum Directorate. Significant offshore gastests have been documented in the 5 MMcf/d range with establishedoil and gas production of 4 MMBoe realized at the onshore StoneyCreek Field within the same depositional basin about 78 milesnorthwest of the lands.
Utilities Springing Ahead To Test Y2K Readiness
In separate announcements, Southern Company and PacifiCorptouted their readiness for the year 2000. Both said utilitysubsidiaries are testing systems by setting their clocks forward toreplicate conditions in a year 2000 environment. Generation,transmission and distribution systems are being tested by thecompanies.
Utilities Springing Ahead to Test Y2K Readiness
In separate announcements, Southern Company and PacifiCorptouted their readiness for the year 2000. Both said utilitysubsidiaries are testing systems by setting their clocks forward toreplicate conditions in a year 2000 environment. Generation,transmission and distribution systems are being tested by thecompanies.
Ocean Energy Divests $116 M of Assets to Reduce Debt
Ocean Energy Inc. (OEI) announced two separate sales worth acombined $116 million and 164 Bcf of gas last week, as it carriedout a debt reduction plan aimed at preparing the company for itsmerger with Seagull Energy. OEI said shareholders for bothcompanies are holding special meetings March 30 to vote on themerger. If they vote in favor, the company will be officiallymerged that afternoon.
Dynegy Adds to SE Power Portfolio
Dynegy recently announced construction plans for two separate500 MW facilities in the Southeast, making a reality of its promiseto increase its power asset portfolio in the area. With thesefacilities, one located in Heard County, GA and the other locatedin Oldham County, KY, Dynegy will increase its Southeast energyassets from three to five.