Electric Power news briefs, December 19

Calpine Corp. said it acquired Power Systems Mfg. LLC (PSM), Boca Raton, Fla., a combustion turbine component engineering, design and manufacturing manufacturer for $43 million, including $10.7 million in Calpine common stock, totaling 280,000 shares, and $32.3 million in cash. The majority of the cash payments will be made in five equal annual installments beginning in January 2002, and is contingent upon future PSM performance, Calpine said.

Southern Energy Inc. reported completing the acquisition of four power plants with electric generating capacity totaling 5,154 Mw and other assets from Potomac Electric Power Co. (Pepco) for a net purchase price of $2.65 billion. Southern Energy said it expects the acquisition to add to earnings, and has already included the expected positive effect in its previously released 2001 earnings projections of $1.15-$1.20/share. Southern Energy has agreed to sell power from the power plants back to Pepco for up to 4 years.

Questar Corp. Chief Executive R.D. Cash said 2001 capital spending will be between $368 million-$563 million, a potential record for the natural gas company. The higher spending, Cash said, will occur if construction begins as scheduled on two major pipeline projects. Questar's storage, transportation, and distribution systems operated at or near capacity during November, he said, resulting from colder winter temperatures and growing natural gas use for electricity generation. November was the coldest on record in Questar's Utah service area. Questar's interstate pipeline system had no excess transportation capacity, while the company's gas distribution utility was forced to curtail service to industrial customers for several days to ensure adequate supplies for residential users. With higher wellhead prices, Cash said, Questar will meet or exceed the First Call earnings estimate of $1.67/share for 2000.

Scana Corp. said it received approval from the South Carolina Public Service Commission to raise natural gas rates to 99.340�/therm from 78.151�/therm, the third increase approved this year by regulators. The increase will go into effect in the first billing cycle in January 2001 and will raise residential customers' bills an additional 19.25%, or $127.70/year. So far this year, regulators have approved increases totaling 45.3%.

FortisUS Energy Corp., a subsidiary of Maritime Electric Co. Ltd., reported it has purchased the 5 Mw Dolgeville hyroelectric plant, Dolgeville, NY, and the 2 Mw Diana project, Diana, NY. Both plants were commissioned in mid-1985. Terms of the transaction and the seller were not disclosed.

Allegheny Energy Inc. reported it expects earnings per share for 2000, before extraordinary and other charges, to be in line with its previously estimated target of $2.80-$2.90/share, compared to $2.64 in 1999. Company officials said they are optimistic 2001 earnings per share will be $3.10-$3.30/share, a 10% increase from 2000 results.

American Electric Power Co. Inc. (AEP) said it will employ a urea-based system as the source of ammonia for the plant's selective catalytic reduction (SCR) system at its coal-fired 2,600 Mw Gen. James M. Gavin Plant, Cheshire, Ohio. Previously, the company said anhydrous ammonia would be used in the SCR system to achieve the reductions in nitrogen oxide (NOx) emissions required by the US Environmental Protection Agency. Company officials said the change was made after the community expressed fear of the impact of a major release of anhydrous ammonia. AEP and other power generators in the Midwest and Southeast are required by federal mandate to reduce NOx emissions by May 2003.

Exelon Corp. said it acquired 49.9% of the stock of Sithe Energies Inc., completing a $682 million deal reported Aug. 11. The remaining 50.1% of Sithe will be owned by Vivendi (34%), Marubeni Corp. (15%), and Sithe management (1%). Under the agreement, Exelon has the option to purchase the remaining 50.1% of Sithe within 2-5 years at a price based on prevailing market conditions when the purchase option is exercised. Exelon estimates the initial investment in Sithe will contribute approximately 1�/share to its consolidated earnings in 2001 and 2002.

PSEG Americas Ltd. has agreed to buy 45% of Inverder SA by yearend and the balance in May 2001 from Astra CAPSA, an affiliate of Repsol YPF, and its partners for $200 million (US), Repsol reported. Inverder holds a 90% interest in Argentina's Empresa Distribuidora de Electricidad de Entre Rios SA (EDEERSA), which has a concession to distribute electricity throughout the Argentine province of Entre Rios. The sale is part of a divestiture plan Repsol YPF agreed to after Repsol purchased YPF in 1999.

Related Articles


11/06/2009 Questar Exploration & Production Co., Salt Lake City, is drilling a horizontal well to the H4 member of the Eocene Green River formation at 7,0...

Questar, Enterprise begin White River hub operations

12/17/2008 Questar Pipeline and Enterprise Products Operating have started service on the White River hub in Rio Blanco county, Colo., connecting Enterprise's...

SPE: Industry continues tapping unconventional resource potential

09/23/2008 The estimated vast unconventional resources hold much promise for substantially adding to the world's energy needs, but developing these resources ...

BLM posts final EIS for Pinedale Anticline area

06/30/2008 The final supplemental environmental impact statement for the Pinedale Anticline Project Area in Wyoming is available, the US Bureau of Land Manage...

Whiting buys Uinta basin gas field interests

05/05/2008 Whiting Petroleum Corp., Denver, said it could double production by 2010 from Flat Rock gas field in Uintah County, Utah, which it is buying from C...

Rockies gas pipeline open season to start; route changed

05/05/2008 Alliance Pipeline Inc. and Questar Overthrust Pipeline Co. plan to launch a binding open season May 12 to assess interest in shipping natural gas o...

Rockies Alliance pipeline open season starts

05/02/2008 Alliance Pipeline and Questar Overthrust Pipeline plan to launch a binding open season May 12 to assess interest in shipping natural gas on the com...

Shale plays send PGC's US gas resource estimates higher

09/14/2007 Shale gas plays provided most of the impetus as estimated US gas resources grew dramatically from yearend 2004 to yearend 2006, the Potential Gas C...

Wyoming Baxter shale gas flows without frac

09/05/2007 Questar said it still has much to learn about the Cretaceous Baxter shale in the Vermillion subbasin in southwestern Wyoming after it began gas sal...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected