Signed

Houston Industries Wholesale Energy Group, an affiliate ofHouston Lighting & Power, has signed a 10-year contract tosupply up to 50 Bcf to LGS Natural Gas, an affiliate of LouisianaGas Service Co., the largest distributor in the state.

Devon Energy Corp. said it signed agreements that fix the priceit will receive for 55,000 MMBtu/d of its 1999 production at$2.01/MMBtu. In addition, Devon currently has agreements covering8,000 MMBtu/d of its Canadian production at an average price ofC$2.32/MMBtu.

UtiliCorp United subsidiary Aquila Energy signed an eight-yearcontract to supply gas to a 265 MW independent power project beingbuilt in Rumford, in the paper processing region of western Maine.The contract is valued at $500 million. The plant is one of thefirst merchant facilities being built without a dedicated ratebase, a trend in the gradual deregulation of electricity. The plantis expected to begin operation some time in 2000.

Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract. The deal with Unocal follows a similar transactionPEAK negotiated with Marathon for supply this winter.

Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract.

Southern Company Energy Marketing signed a five-year deal tomanage Brazos Electric Power Cooperative’s power generation andfuel supplies and deliver 1,650 MW of power to the co-op. Southerncan market the excess power on the open market. The deal alsoobligates Southern to expand the Texas co-op’s generation capacityby 600 MW to satisfy projected load growth, particularly in thearea surrounding Dallas-Fort Worth.

Calpine Corp. power marketing affiliate Calpine Power Servicessigned a one-year sales agreement with LG&E Energy Marketing(LG&E) to provide 150 MW from Calpine’s Texas power systembeginning January 1999. Calpine’s Pasadena Power Plant will provide140 MW of electricity, with the additional 10 MW coming from thecompany’s Texas City and Clear Lake facilities. With thisagreement, Calpine has now sold all of the power from its existingPasadena facility through 2001.

Many western producers believe the coal bed methane legislationsigned into law last week by the president puts drilling operationsin the Powder River Basin and other basins heavy in coal gas backon track. Not so, said Amoco Production Co., warning thelegislation (S. 2500) doesn’t accomplish what was intended.

The federal budget signed by President Clinton last week setaside funding to help jump start negotiations among jurisdictionalfederal agencies on an agreement to coordinate interagency reviewof natural gas pipeline projects, paving the way for potentiallyquicker certification at FERC in the end.