AES Corp. said it has begun construction of the 350 Mw $300 million AES Wolf Hollow power plant in Granbury, Tex. It will supply power under a 20-year power purchase agreement to a major US power marketer. The remaining electric power will be sold into the Texas electricity market. The facility is expected to commence commercial operations in the summer of 2002.
Midwest Generation, a unit of Edison International, said the company's coal-fired plants reduced emissions of nitrogen oxides by more than 10% and emissions of sulfur dioxides by more than 18% in 2000. Chicago-based Midwest Generation acquired 12 electricity generating facilities in Illinois in December 1999. Two of its six coal plants are located in the city of Chicago, and the others are in Waukegan, Joliet, Romeoville, and Pekin.
The Belize Public Utilities Commission has extended Belize Electricity Ltd.'s license to generate, transmit, and supply electricity through June 30, 2015. Fortis Inc. acquired a 67% interest in Belize Electricity in 1999. Under the license, Belize Electricity will have the right of first refusal on any subsequent license. If the license is not renewed, the company will be entitled to receive upon the transfer of its electric utility assets to a new operator, the greater of market value or 120% of the net book value of these assets.
Duke Energy Corp. reported fourth quarter net income rose 18% beating expectations on higher natural gas prices and nonregulated electricity prices. The company's net income exceeded expectations despite a $110-million charge related to California power sales taken during the fourth quarter. The company also said that for all of 2001, 90% of its generation had already been sold to other suppliers with California delivery points. Duke said its earnings also exclude sale of two LNG sales and sale of its stake in a wireless telecommunications company. Duke said fourth-quarter ongoing earnings were 94�/share, a 16% gain from earnings of 81�/share in the year-earlier period. The company posted net income of $352 million for the quarter on revenue of $1.2 billion, an 18% gain from net income of $299 million on revenue of $1 billion in the 1999 quarter.
Norway's Hafslund ASA, Viken Energinett AS, and Akershus Energi AS reported an agreement to form a joint company under the name of �tnett AS. �tnett will own and operate the regional grids in Akershus and �tfold along with the decentralized district heating of Viken and Akershus Energi in Akershus. In addition, �tnett will take over Hafslund's ownership interests in Rygge Elverk and Rakkestad Energiverk as well as Akershus Energi's shares in S�ndre Follo Energi, Follo Energiverk AS and Gjerm�nergiverk. Directly and indirectly, �tnett has more than 131,000 grid customers.
NUI Corp. reported net income for the quarter ended Dec. 31, 2000 of $8.4 million or 65�/share on revenue of $320.4 million, compared to net income of $7.6 million or 60�/share on revenue of $233.3 million in the year earlier period. The company attributed the increase to colder temperatures in the company's distribution service territories, as well as strong results from its energy trading business.
Scana Corp. said it sold $202 million of floating-rate medium-term notes due Jan. 24, 2003. The 2-year notes were priced at 99.775% to the company and will be priced to the public at 100%. Net proceeds from the sale will be used to pay down outstanding short-term debt and for general corporate purposes. The new medium-term notes have a six-month no-call provision and are not subject to a sinking fund. The offering is being made through an underwriting syndicate consisting of Credit Suisse First Boston and Wachovia Securities Inc.
Tengasco Inc. said it completed a 5-mile natural gas pipeline utility system to begin immediate deliveries of retail natural gas to residential, commercial, and industrial customers in Hancock County, Tenn., and the city of Sneedville, Tenn. The county previously had no gas distribution facilities until the system was financed and installed by Tengasco for Powell Valley Utility District. The company said natural gas produced from Tengasco's Swan Creek field will be available to 7,000 customers at a retail price of $8.90/Mcf.
TNPC Inc. parent of The New Power Co., said it will change the name of the company to NewPower Holdings, Inc, effective as of the filing date January 19, 2001. NewPower Holdings, Inc. is traded on the New York Stock Exchange (NYSE) under the symbol NPW. The Company said it will retain its NPW trading symbol on the NYSE.
Canadian Niagara Power Co. Ltd. (CNP),Fort Erie, Ontario, a 50% affiliate of Fortis Inc., said it signed a letter of intent with the city of Port Colborne, Ontario, to lease the electricity distribution business of Port Colborne Hydro Inc. on the north shore of Lake Erie. Under the 10-year deal, Canadian Niagara Power Inc. (CNPI), a CNP unit, will receive all revenues from Port Colborne Hydro in exchange for assuming responsibility for the operation of the business. The City of Port Colborne will receive lease payments from CNPI. CNPI will finance and own all capital additions and will hold an option to purchase the business for fair market value at the end of the 10-year term.
Out Takes Inc. said it notified Pacific Gas & Electric Co., a unit of PG&E Corp., it expects to repudiate its contract with Los Alamos Energy, a Qualified Facility (QF) electricity generator and a subsidiary of Out Takes Inc. Out Takes also owns Atlas Engineering and AtlasPower. PG&E on Jan. 17, in an 8K filing with the US Securities and Exchange Commission disclosed among other things, it has payments due to QF electricity generators in early February of $420 million, and estimated payments due to QF's of $410 million in early March. In negotiations between PG&E and a group of QFs (not including Los Alamos Energy) PG&E has requested the QF's forbear from demanding payment for power delivered from January until March 31, 2001 with payment due in full on April 1, subject to numerous conditions. While Los Alamos Energy has demanded payment in full there can be no assurance that PG&E will, or can make such payment or that PG&E can or will make payments as proposed April 1, 2001, Out Take said. It said it is exploring alternative buyers or markets for electricity sales.
Vectren Corp. reported plans for a public offering of 5.5 million shares of new common stock. The offering will be made through the company's registration statement filed with the US Securities and Exchange Commission Jan. 19. Proceeds will be used to help complete the permanent funding of the acquisition of the natural gas distribution assets of Dayton Power & Light Co. and other recent investments.
FPL Energy LLC, a wholly owned subsidiary of FPL Group Inc., reported construction has begun on a 25.5 Mw wind farm in Iowa County, Wis. The 17-turbine wind farm, which FPL Energy will build, own and operate, is expected to begin generating power by spring 2001. The power will be purchased by Wisconsin Electric.
Ballard Power Systems Inc. and the UK's Victrex PLC reported entering into an exclusive agreement to develop and manufacture ionomers (proton conductive polymers) for use in membranes for Ballard fuel cells. Ballard and Victrex will develop the manufacturing processes for Ballard's proprietary ionomer and collaborate on the development of Victrex's proprietary ionomer. The initial development period will last up to 4 years, during which each party will fund its own costs.
CP&L, a wholly owned subsidiary of Progress Energy Inc., said regulators in the Carolinas have approved its plan to accelerate the cost recovery of its nuclear generation facilities in the year 2000. CP&L said it requested this action to fully utilize the $200 million proceeds from the sale of the company's BellSouth PCS interest. In the third quarter, the company reported a $121.1 million, or 79�/share gain, as a result of the sale. Under earlier regulatory orders, the allowed range of accelerated depreciation expense was set at $106 million-$150 million/year from 2000-2004. Based this plan for the year 2000, the company will record the maximum of $150 million and an additional one-time charge of $125 million for a total of $275 million of accelerated depreciation in the year 2000.
