Subsidiary

Duke/Fluor Daniel has been awarded a contract by West GeorgiaGenerating Co. L.P., a subsidiary of Sonat Energy Services, toprovide engineering, procurement and construction services for a650 MW dual fuel, gas and distillate oil-fired power plant in UpsonCounty, GA. The power plant will be designed to use four PG7241(FA) gas turbines in simple-cycle operation. The $180 million powerplant, which will be built within the Thomaston Industrial Park inUpson County, is expected to be fully operational by June 1, 2000.A significant portion of the electricity from the plant will besold to Georgia Power under an existing power sales agreement.

In an attempt to better support record-breaking power demand inthe Midwest, OG&E Electric Services (OG&E), an OGE Corp.subsidiary, said yesterday it plans to reactivate two powergenerators at its Mustang Power Plant. The utility is alsoconsidering other enhancement projects, with a goal to add 1,000 MWto its power supply system.

Dominion Resources Inc. and Consolidated Natural Gas Co. (CNG)have agreed to sell CNG’s Virginia Natural Gas (VNG) distributionsubsidiary in exchange for Virginia regulators’ support for theirproposed merger.

Columbia Propane named Donald F. Schalk president and CEO ofColumbia Petroleum Corp. He reports to A. Mason Brent, ColumbiaPropane president and CEO. Columbia Petroleum is a wholly ownedsubsidiary of Columbia Propane, an affiliate of Columbia EnergyGroup. Richland, PA-based Columbia Petroleum acquired the assets ofCarlos R. Leffler, Inc. and certain affiliates on May 11 andcurrently serves 36,000 customers in Pennsylvania, Delaware, NewJersey, Maryland, and Virginia. Schalk’s most recent position waspresident, retail services for Agway, Inc. in Syracuse, NY.

Enogex Inc. completed its acquisition of Transok LLC, a gatherer,processor and transporter of natural gas in Oklahoma andTexas. Enogex, a subsidiary of OGE Energy Corp., announced plans May17 to buy Transok from Houston-based Tejas Gas LLC, an affiliate ofShell Oil Co. for $701 million (See Daily GPI May 18, 1999).

NRG Energy, a wholly-owned subsidiary of Northern States Power,said it has completed the acquisition of Arthur Kill Station andthe Astoria Gas Turbine Sites totaling 1,456 MW of generatingcapacity from Consolidated Edison Co. of New York The 842-MW ArthurKill Generating Station, located on Staten Island, includes twosteam generating units designed to burn gas and oil, as well as a”black start” gas turbine. The 614-MW Astoria Gas Turbine Sites,located in Queens, consist of 20 gas turbines, grouped into 11units. NRG holds 100% interest in the projects.

Midcoast Energy Resources said its wholly owned Louisianaintrastate pipeline subsidiary, Creole Gas Pipeline, has reached along-term agreement with Chevron Chemical Co. to provide gas supplyto Chevron’s Oak Point plant in Belle Chasse, LA. The five-yearpact calls for Creole to provide Chevron with 9,500 MMBtu/d of gas,or about 90% of the total requirements of the Oak Point plant.Creole will construct a new seven-mile pipeline to provide theservice, which will start in September. Creole provides gastransportation services to major industrial customers in the NewOrleans area.

Calling it the largest reserve discovery in the AppalachianBasin, Columbia Natural Resources (CNR), a Columbia Energy Groupsubsidiary, said it found reserves with estimated production of 50MMcf/d while drilling deep into a sub-basin in Roane County, WV.The exploratory test well was drilled to a depth of 10,300 feet inthe Trenton-Black River Formation on the Vineyard Ridge prospect.

Consolidated Natural Gas Co. E&P subsidiary CNG ProducingCo. agreed to buy interests in Lopeno and two adjacent South Texasgas fields. Earlier in the year, CNG Producing bought about a 50%interest in the Lopeno field, and together with the most recentpurchase, CNG Producing will own nearly 100%. On a combined basis,the company will pay $125 million for the two transactions.