Southeastern

Houston’s Midcoast Energy Resources Inc., a pipeline powerhousein the southeastern United States, tightened its grip in Alabamaafter reaching an agreement yesterday with Calpine Corp. to provideup to 276 MMcf/d in natural gas transportation services to twofacilities in Alabama.

NGPL discovered a leak Monday on its HI [High Island] Block 71Lateral offshore southeastern Texas. Three platforms (High IslandBlocks 71, 139 and 116) with scheduled nominations through thelateral were shut on Tuesday until further notice. Shippers will benotified via NGPL’s bulletin board when nominations may be resumed.

The northern Illinois and southeastern Wisconsin transportationmarkets, which have long been dominated by ANR Pipeline, moved onestep closer to obtaining pipeline-on-pipeline competition last weekwhen FERC awarded the proposed Guardian Pipeline LLC a favorablepreliminary determination on non-environmental issues.

The National Energy Board received an application from AECSuffield Gas Pipeline Inc. (AEC Suffield) to construct and operatea gas pipeline from southeastern Alberta to southwesternSaskatchewan to be known as the North Suffield Pipeline. The60-mile pipeline extension will wrap around the northern part ofthe Suffield Military Block before it ties in to the existing AECSuffield meter station, which connects to TransCanada PipelinesLimited’s system near Burstall, SK. It would have a design capacityof 190 MMcf/d of gas and would cost C$22.3 million. AEC Suffield isplanning an in-service date of Nov. 1. AEC’s existing 72-mileSuffield pipeline was built in 1998 after a landmark decision bythe NEB. The ruling authorized a bypass around Nova Corp.’s40-year-old franchise in the chief gas-producing province ofAlberta and introduced market-based, negotiated tolling.

Houston-based Amerex Natural Gas Inc. and sister company AmerexPower Inc. together bought the gas and electricity brokeragebusinesses of Houston-based BTU Brokers Ltd. for an undisclosedprice. As a result, Amerex’s daily average of physical and papergas deals grew 12.4% to $287 million, and physical and paper powerdeals increased 5% to $175 million for a combined annual value of$121 billion in gas and power deals.

Pennaco Energy, the largest leaseholder and most active operatorin the Powder River Basin in Wyoming and southeastern Montana,reported that its gross gas production out of the basin has reached46.1 MMcf/d and is expected to increase rapidly now that newpipeline infrastructure is in place. This promising coal-bedmethane play, which took the national spotlight last year, isexpected to be one of the fastest growing areas in the RockyMountain region over the next decade.

The war of words between the ANR Pipeline and Guardian PipelineLLC over the proposed Guardian line into southeastern Wisconsinraged on this week, bearing all the earmarks of theHatfields-and-McCoys’ feud – minus the rifles.

Marking its initial promotion to capture some of the residentialgas market in Georgia, Southeastern States Energy, Inc. (SSE)announced a partnership with PowerTrust.com, an Internet-basedpower services company, to offer customers the ability to sign withSSE through the PowerTrust.com web site. Although the GeorgiaPublic Service Commission (GPSC) will decide market share for thestate’s suppliers on Aug. 11, Beth Perry Sewell, president of SSE,said there is still time to be successful in the Georgia market.

Allen Franklin was named Southern Co.’s COO yesterday. In thenewly-created position, Franklin will be responsible for five ofSouthern’s Southeastern subsidiaries: Alabama Power, Georgia Power,Gulf Power, Mississippi Power and Savannah Electric. He will alsobe in charge of Southern Generation, including all of the company’sregulated fossil and hydro generation. Franklin is currentlyexecutive vice president of Southern and CEO of Georgia Power. Hejoined Southern Company in 1970 and has held various executivetitles.