Southern

Indiana Energy Inc., parent of Indiana Gas Co., and Sigcorp, theholding company for Southern Indiana Gas and Electric Co. (Sigeco),announced plans to merge and create a new $1.9 billion holdingcompany called Vectern Corp. The transaction was approved by theboards of directors of both companies Monday. If the regulators andthe companies’ shareholders give their nods to the deal, Vectrenwould become the largest combined utility in the state, serving650,000 gas and electric customers.

Palmetto Interstate Pipeline Co., a partnership of SouthernNatural and Carolina Power & Light, said it is extending itsopen season for firm transportation capacity on its proposed systemuntil June 30. Interested parties should contact Sonat’s MarkLimbaugh at (800) 633-8570 or CP&L’s Rob Caldwell at (919)546-4552. Palmetto is planning to build a line that would run fromSonat’s terminus in Aiken, SC, to an interconnect with NorthCarolina Natural Gas – which is being purchased by CP&L – inRoberson, NC. CP&L plans to subscribe for a substantial portionof Palmetto’s 200 MMcf/d to 300 MMcf/d capacity to fuel newelectric generation being developed in the Carolinas, with theremainder to be used to increase regional gas availability.CP&L said it plans to build 4,000 MW of gas-fueled generationin the Carolinas by 2007. Palmetto said it plans to have Phase I ofits system in service in April 2002 with up to 300 MMcf/d ofcapacity. Two later phases in the following two years would addcapacity to the system.

Beverly Marshall, formerly a Washington representative forSouthern California Edison, has been named vice president andgeneral manager of federal government affairs for Duke Energy.

Southern California Gas’ attempt to sell its smallest LosAngeles Basin underground natural gas storage facility has beenabruptly halted by state regulators while an investigation isconducted into how the nation’s largest gas utility has dealt withregulators and surrounding landowners in the Eastern LA suburb ofMontebello, CA, bordering the storage facility. It is now in thehands of the California Public Utilities Commission, which couldassess some large fines if SoCalGas is found to have violated staterules.

Southern California Gas’ attempt to sell its smallest LosAngeles Basin underground natural gas storage facility has beenabruptly halted by state regulators while an investigation isconducted into how the nation’s largest gas utility has dealt withregulators and surrounding landowners in the Eastern LA suburb ofMontebello, CA, bordering the storage facility. It is now in thehands of the California Public Utilities Commission, which couldassess some large fines if SoCalGas is found to have violated staterules.

Guardian Pipeline, a planned new interstate natural gas pipelineto serve northern Illinois and southern Wisconsin, is movingforward with an open season that will begin May 4. The pipelinewill have a minimum capacity of 650 MMcf/d and will be expandable,depending on the market response, to a capacity of up to 1.1 Bcf/d.It already has signed a firm precedent agreement with Wisconsin Gasto transport 650 MMcf/d, beginning Nov. 1, 2002, the project’splanned in-service date. The pipeline will transport gas frominterconnections with Alliance, Northern Border, NICOR, Midwestern,NGPL and the proposed Tristate Pipeline near Joliet, IL, tonorthern Illinois and southeastern Wisconsin markets. It willconsist of 24,000 hp of compression and 147 miles of 36-inch pipeextending from Joliet to the Watertown, WI area. Guardian isjointly owned by WICOR, CMS Energy Corp. and Viking GasTransmission, with each holding a one-third interest. The openseason closes June 3. For more information contact George Hass,313-436-9238.

Guardian Pipeline, a planned new interstate natural gas pipelineto serve northern Illinois and southern Wisconsin, is movingforward with the announcement that its “open season” will beginTuesday, May 4, 1999, at 8 a.m. CDT. Guardian Pipeline is jointlyowned by WICOR, CMS Energy Corp. and Viking Gas Transmission, witheach holding a one-third interest.

Texaco, Shell and Southern California Gas are moving fromopposite ends of the gas business to converge on the developingmarket for distributed generation powered by fuel cells.

The nation’s largest gas distributor, Southern California Gas,last week signaled a possible future change in the way itscustomers access intrastate transmission during oral arguments atthe CPUC on future changes in California’s gas industry. Inaddition, for the first time, a number of the 19 major participantsin the state’s gas restructuring proceeding suggested a settlementprocess might be adopted to resolve some controversial issues.