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In an attempt to go “above and beyond” federal regulations, sixof Massachusetts’ oldest — and dirtiest — power plants will beretrofitted or rebuilt and will switch to cleaner burning naturalgas after reaching a voluntary agreement last week with stateofficials. The six plants, owned by five companies, vowed to cuttheir emissions in half by 2003, a move that has followed growingpolitical and grassroots pressure throughout Massachusetts.

Three years ago, Reliant Energy was a Texas-based,Texas-centered utility, but that’s no longer true. On Friday, theHouston-based utility improved its presence in the Mid-Atlanticregion, completing a $2.1 billion acquisition from Sithe Energiesof 21 power plants in Pennsylvania, New Jersey and Maryland (PJM).The facilities together total 4,276 MW of net generating capacityand bring Reliant’s domestic generating capacity to 23,000 MW.

Retracing an early round of profit-taking, natural gas futuresclawed their way higher Friday as traders put the finishing toucheson a week in which prices not only notched a new life-of-contracthigh at $3.385, but also posted a fresh prompt contract 30-monthhigh. With Friday’s 0.2-cent increase, the June contract advancedeach day to gain 32.9 cents for the week. June finished at $3.354amid light estimated volume of just 54,639.

More toxic pollution is emitted from electric utilities andmines than any other industries in the U.S. — up to 63% of thenation’s reported releases — according to the U.S. EnvironmentalProtection Agency. The EPA released its annual Toxic ChemicalInventory Report last week, which for the first time includedfossil fuel-burning utilities – but it wasn’t a “first” for whichthe industries would most like to be known.

Acknowledging that a combination of unexpected generator outagesand sustained hot weather could create the threat of power outagesthis summer, the California Independent System Operator (Cal-ISO)launched a new alert system for gaining enough voluntaryconservation by businesses and mass consumers to ride out thepeak-demand periods. Calling it “Power Watch 2000,” Cal-ISOPresident/CEO Terry Winter said he anticipates that both short- andlong-term the state can use market-based programs to addresspotential shortfalls.

In an effort to recover escalating gas costs, PPL Utilities ofAllentown, PA, has asked Pennsylvania regulators to increase thegas supply charge for customers served by its two gas distributors- PFG Gas Inc. and North Penn Gas Co.

“Not with a bang, but a whimper” the $7.5 billion lawsuit filed by TransAmerican Natural Gas against merging giants Coastal Corp. and El Paso Natural Gas, slid to a quiet grave under a sealed settlement agreement last week.

The continuing public split between the nation’s largestmunicipal utility and California’s nonprofit, state-charteredtransmission grid operator is widening with finger-pointinginvolved in the plans for heading off potential power shortagesthis summer. Left unresolved is the more than two-year-olddiscussion attempting to bring the Los Angeles Department of Waterand Power (LADWP), a transmission- and generation-rich muni, intothe state’s fold.

The “unbalanced state” of the natural gas market with demandexceeding supply has caused PaineWebber analyst Ronald Barone toraise his average gas price projections by 15 cents for this yearand 10 cents next year over previous predictions, and warn ofpossible severe price spikes throughout the balance of this year.