Daily GPI

Allegheny Energy Supply Co. LLC upped its total generatingcapacity to nearly 10,000 MW after setting up a joint venture withUGI Development to expand and market generation output fromfacilities at UGI’s Hunlock Creek generating station nearWilkes-Barre, PA. Part of the deal gives Allegheny Energy Supplyaccess to 46 MW to sell into the Pennsylvania-New Jersey-Marylandmarket.

Almost a year after Plains Resources and its subsidiary, PlainsAll American Pipeline L.P., were allegedly involved in”unauthorized trading,” the companies announced yesterday that theyhave reached an agreement in principle for the settlement of twoclass action securities suits. The companies have agreed to payaffected shareholders a total of $29.5 million plus interest forthe unauthorized trading loss disclosed in November 1999.

Aside from the political cries for regulatory actions to provideconsumer electricity rate relief, two days of federal hearingsMonday and Tuesday turned up a wide array of diagnoses andpotential prescriptions for curing what ails California’sstill-convalescing wholesale power market.

Energy and Environmental Analysis, Inc. (EEA) released a reportyesterday warning that the North American gas market is on coursefor entering the winter heating season with dangerously low storagelevels.

To expand its exploration and development projects, Calgary’sWestminster Resources Ltd. will sell all of its Canadian oil andgas assets to AEC Oil & Gas for $62.7 million in cash under anagreement reached yesterday by the companies. Closing is set forOct. 19.

TransCanada Pipelines Ltd is on the move again. A week ago thecompany’s power subsidiary purchased Westcoast Energy’s interests infive Canadian cogeneration plants in a deal valued at C$512million. This week, its midstream subsidiary is selling its naturalgas gathering and processing assets in Saskatchewan to newcomer VISTAMidstream Solutions Ltd (see Daily GPI, Sept. 8).

Mitchell Energy & Development Corp., which two weeks agoannounced it was increasing its capital budget nearly $50 millionmore this year, said it has completed two system expansion projectsin North Texas, boosting both natural gas sales and gas liquidsproduction.

Independent oil and gas operator Central Resources entered intotwo definitive sale agreements to sell specific oil and gasproperties and related facilities located in West Texas, themid-continent and Rockies areas, the four corners area and alongthe Texas, Louisiana and Mississippi Gulf Coast. Total proceedsfrom the sale are estimated at $70 million. Denver-based CentralResources CEO Paul Zecchi said the company will use the cashproceeds on “future acquisition and development opportunities”domestically as well as internationally. The sale transactions wereeffective on June 1, and are expected to be completed inmid-to-late September.

Despite the AGA’s report of a much larger-than-expected storageinjection of 72 Bcf last week, there was plenty of otherfundamental news to keep this bull market steaming full speedahead. Prices generally moved 5 to 10 cents higher across the boardwith the largest increases in the Midcontinent and Gulf Coastregions.