Subsidiary

Texas Utilities, ServiceMaster Offering Energy Management

Texas Utilities Co. subsidiary TU Integrated Solutions formed astrategic venture with ServiceMaster to own and operate an energymanagement business. The new venture has acquired all the assets ofServiceMaster Energy Management (SEM), currently a division ofServiceMaster, and will be owned 85% by Texas Utilities and 15% byServiceMaster. Texas Utilities will invest $46 million for itsshare of the venture.

January 6, 1999

Sempra Granted Mexican Permit

Mexico’s Comisi¢n Reguladora de Energ¡a (CRE) granted a permitto Transportadora de Gas Natural de Baja California, a subsidiarycompany of U.S.-based Sempra Energy International, for transportinggas to the Presidente Jurez thermoelectric station in Rosarito,Baja California. Enova and Pacific Enterprises won the bid calledfor gas to supply the generating station. The projected 30-inchdiameter pipeline will span 23 miles and is designed to operatewith a compression capacity of 810 MMcf/d and operative capacity of270 MMcf/d.

January 5, 1999

Millennium Gains Ground; Upstream Links Filed

TransCanada Pipelines and Westcoast Energy subsidiary St. ClairPipelines last week filed with Canada’s National Energy Board tobuild the last remaining support components required fordevelopment of the Millennium Pipeline project, a 700 MMcf/d gasline designed to serve markets throughout the Northeast.

December 21, 1998

Millennium Makes Progress; Upstream Parts Filed

Westcoast Energy said its St. Clair Pipelines subsidiary filedthe last major component required for the Millennium Pipelineproject yesterday with the National Energy Board in Canada. Thecompany filed an application for a $165 million pipeline that wouldlink Union Gas’ Dawn Hub in Ontario to lake crossing facilities tobe built by TransCanada. TransCanada filed an application for thelake crossing facilities earlier this week. St. Clair’s 50-mileMillennium West Pipeline would deliver about 700 MMcf/d of gas toPatrick Point on the shores of Lake Erie.

December 18, 1998

Western Selling Jonah Field Interest

Western Gas Resources’ production subsidiary Lance Oil &amp Gasis offering for sale a working interest in the Jonah Field, a largebasin-centered gas accumulation in the northwest portion of theGreen River Basin in southwest Wyoming. Western intends to retainall of its gathering and processing rights in the area following asale.

December 14, 1998

Franchise Fee Battle Continues in Tiny TX Town

PG&ampE Gas Transmission Texas (PG&ampE GT-T), a subsidiary of PG&ampE Corp., and Southern Union Gas Co. said last week they will continue to fight a judgement awarding franchise fees from marketer sales to the City of Edinburg, TX (Pop. 29,885). They said they will appeal a judgment handed down in the 92nd district court in Hidalgo County, TX, even though the judge reduced the award under an August 1998 jury verdict.

December 14, 1998

PG&E Still Fighting TX Franchise Fee Case

PG&E Gas Transmission Texas (PG&E GT-T), a subsidiary ofPG&E Corp., said it will appeal a judgment handed down lastweek in the 92nd district court in Hildalgo County, TX, regardingfranchise fees, even though the judge reduced the August 1998 juryverdict.

December 8, 1998

AEP Closes Deal on Equitable Midstream Assets

AEP Resources Inc., a wholly owned subsidiary of AmericanElectric Power, completed the purchase of the midstream gasoperations of Equitable Resources Inc.

December 7, 1998

CIG, Paiute Plan New Nevada Pipe

Coastal’s Colorado Interstate Gas (CIG) has teamed up withSouthwest Gas subsidiary Paiute Pipeline on a new gas pipelineproject designed to deliver new coal-bed methane production in Utahto growing markets in Nevada and Southern California.

November 23, 1998

Petal Mulling Strong Open Season Response

Petal Gas Storage Co., a subsidiary of Crystal Oil Co., said theopen season for the proposed expansion of its high deliverabilitysalt cavern storage facility near Hattiesburg, MS, received servicerequests exceeding proposed capacity.

November 23, 1998