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Metromedia Co. has purchased a majority interest in New Jersey-based CPM Energy Inc., formerly Cogen Marketing Power, for an undisclosed amount of cash, making it possibly the largest aggregator of natural gas and electricity in the nation.

Matching the size of natural gas mega-mergers south of the border, the planned C$11 billion combination of TransCanada PipeLines and NOVA Corp. announced last week would integrate pipeline control of the main Canadian producing province and transportation across the top of the continent to U.S. and Canadian markets.

Texas Utilities last week said it approached Britain’s The Energy Group with “possible interest in the company” in competition with PacifiCorp, which made a failed tender offer to acquire the company back in June. Discussions between Texas Utilities and Energy Group “are at a preliminary stage and may or may not lead to an offer being made for the company,” Texas Utilities said.

Financial analysts and pipeline executives descended on the Federal Energy Regulatory Commission last Friday to urge that regulated pipeline returns be improved because they have fallen so far behind that the financial market is being driven away. On the other side of the debate, however, producers labeled pipelines cash cows that should be reined in. And other observers advised the Commission to stick with the status quo.

Although El Paso was granted a waiver that allows it to begin collecting revenue from its $70 million transportation contracts with NGC Corp. effective Jan. 1 subject to refund, FERC has called for a technical conference on the strongly protested issue. The Commission found few problems with the contracts, including those for smaller amounts of capacity with three other shippers. But because the contracts were so complex, so hotly protested and cover such a large amount of capacity, they deserve a closer look, the Commission said.

With Union Pacific Resources Group’s (UPR) acquisition of Norcen Energy Resources, the company would gain core areas in Canada and Latin America, as well as a stronger position in the Gulf of Mexico, including the deep-water region.

Coastal’s exploration and production operating profits rose by20% for 1997, bolstered by a 24% increase in gas production. Infact, the company’s gas segment continued its tradition asCoastal’s largest contributor to profits. Gas segment operatingprofit for 1997, including joint venture earnings, was $487.3million, up from $378.3 million in 1996. However, as with otherpipeline companies reporting year-end results, Coastal’s pipes sawa decrease in throughput to 2,190 Bcf in 1997 from 2,246 Bcf in1996.

The new combination of Nova Corp. and TransCanada PipeLines faced its first major challenge as soon as the pair came together-making peace with an irate production community angered by the Canadian gas-transportation establishment’s behavior toward Alliance Pipeline Project.

Capitol Hill observers said last week they doubted Rep. Dan Schaefer’s (R-CO) decision to retire from the House at the end of his term later this year would significantly hamper efforts to move electricity restructuring legislation along in Congress, but they still believe the odds are against a bill being passed this year.