The UK's National Grid Group PLC completed the $3 billion acquisition of Niagara Mohawk, Sycracuse, NY. The combined company will more than double the size of National Grid's US operations, creating the largest transmission network and distribution business in the New York/New England market and the eighth largest electricity utility in the US. The newly combined companies will serve more than 3.3 million customers.
Select Energy, Berlin, Conn., a unit of Northeast Utilities, won a 1-year, $90 million contract to supply 350 Mw of peak load to nonresidential customers in Maine. Select Energy will supply power to large and medium-size commercial and industrial customers on standard offer service in the state.
France's Framatome ANP Inc. agreed to purchase Duke Energy Corp.'s engineering and services unit. Terms of the transaction were not disclosed. Duke, Charlotte, NC, said it wanted to align the company's businesses, portfolio, and resources to focus on wholesale energy customers and markets.
UtiliCorp Networks Canada, a unit of UtiliCorp United Inc., Kansas City, Mo., and its largest union, the United Utilities Workers Association representing 480 workers, reached a 4-year agreement. Terms include a 3.5% wage increase in year one, a 3% increase in year two, a minimum 2.5% increase in year three, and a minimum 2% increase in year four, with cost of living agreements tied to Alberta's Consumer Price Index.
Aquila, a UtiliCorp United Inc. unit, purchased the 12 bcf Red Lake storage project near Kingman, Ariz., from Southwest Gas Corp., Las Vegas, Nev. The first phase of the facility, with a storage capacity of 6 bcf, is expected to be operating by the fourth quarter of 2003, with the full 12 bcf planned for the fourth quarter of 2004. The facility will connect to pipelines operated by El Paso Natural Gas Pipeline and Transwestern Pipeline Co.
Hurd Investments, San Antonio, Tex., and a unit of Copano Energy, Houston, purchased Williams Cos. Inc.'s 76% partnership interest in the Webb- Duval gas gathering system, and 100% ownership interests in the Olmitos and Cinco Compadres systems. The three systems include125 miles of gas pipeline with a nominal capacity of 250 MMcfd.
PG&E Corp. and Pacific Gas & Electric Co., San Francisco, asked the US Securities and Exchange Commission to approve the utility's reorganization plan under the Public Utility Holding Company Act. PG&E said it needs the SEC's approval to emerge from bankruptcy protection by the end of the year.
The Midwest Independent Transmission System Operator Inc. instituted its tariffs and is providing regional transmission service for the movement of bulk power as an agent for its 21 transmission-owning members, controlling the flow of electricity over 86,000 miles of electric transmission lines. Prior to the implementation of the Midwest ISO tariff, transmission customers contracted for service from each transmission owner separately.
Rates for residential customers of PacifiCorp-Utah Power will decline 44% as the result of an agreement between the Bonneville Power Administraton and Utah Power that was approved by the Idaho Public Utilities Commission. The BPA credit is the result of extensive negotiations between BPA and state commissions from Idaho, Montana, Oregon, and Washington.