Electric Power news briefs, July 11
Bell Atlantic Corp. ... AES Corp. ... NewEnergy ... El Paso Energy Partners ... Crystal Gas Storage ... Quanta Services Inc. ... Sumitomo Electric Industries Ltd. .... PLT Solutions ... Cleco Corp. ... Williams ... Quest Resource Corp. ... Siemens ... BP Amoco PLC ... IGI Resources
Bell Atlantic Corp.has selected AES Corp. subsidiary NewEnergy Inc. as its electric generation service provider under Phase 3 of Consolidated Edison Co. of New York Inc.'s retail choice program, NewEnergy reported. Approximately 200 accounts in New York City�representing 75 Mw�will be covered under the contract. Terms were not disclosed. NewEnergy Vice-Pres. Brian Hayduk said Bell Atlantic's participation in the program demonstrates there are opportunities for businesses to save money under deregulation.
El Paso Energy Partners LP, Houston, reported it has received approval from El Paso Energy Corp. and its audit and conflicts committee to purchase the gas storage subsidiaries of Crystal Gas Storage Inc. Crystal Gas Storage, a business unit of El Paso Energy Corp., owns and operates two natural gas storage facilities near Hattiesburg, Mississippi with 6.7 bcf of working gas capacity. The current capacity is fully subscribed on a firm basis under long-term contracts that extend through 2005. Total consideration will consist of $170 million in newly issued nonvoting El Paso Energy Partners Preference Units, the company said. These new Preference Units have no mandatory redemption obligation. The acquisition is subject to regulatory review and is expected to close early in the third quarter 2000. El Paso Energy Partners LP is a publicly owned master limited partnership that serves as one of El Paso Energy Corp.'s primary vehicles for the acquisition and development of midstream energy infrastructure assets both onshore and offshore.
Quanta Services Inc., Houston, said it has completed the acquisition of seven companies that are expected to produce annualized revenues of approximately $140 million in 2000. The acquired companies include IRBY Construction Co., Jackson, Miss.; Kuenzi Construction Inc., Silverton, Ore.; dot 05 Optical Communications Inc., Billerica, Mass.; Marlboro Cablevision Constructors Inc., Bennettsville, SC; NetCom Management Group Inc., Albuquerque, NM; Great Western Enterprises Inc., Billings, Mont.; and Tjader & Highstromm Inc., New Richmond, Wis. The acquisitions consist of both platform companies and smaller "tuck-in" companies that will be integrated into existing operating unit, Quantas said. Terms were not disclosed. The company's services include designing, installing, repairing, and maintaining network infrastructure for the telecommunications, cable television, and electric power industries.
Sumitomo Electric Industries Ltd.and New York's Ambient Corp.'s 90%-owned subsidiary, PLT Solutions Inc. have signed a letter of intent to test in Japan PLT technology that permits internet high-speed data transfer by way of existing electric power lines. PLT and Sumitomo are planning to jointly present the technology to Japanese power utility companies. The parties are in the process of structuring the pilot program. Full deployment of PLT's technology in Japan will depend on the results of the pilot program and is subject to the resolution of various deregulation issues governing the Japanese utility companies.
Cleco Corp., Pineville, La., reported its 750 Mw Evangeline generating unit began full commercial operation July 8. It is the company's first nonregulated generating station to go on line. Under terms of a 20-year tolling agreement, Williams Energy Marketing & Trading, a unit of Williams, will supply the fuel to the Evangeline plant and purchase and market the plant's output. Cleco Evangeline LLC, the Cleco subsidiary that owns the plant, will be paid a fee for operating and maintaining the facility. Cleco CEO David Eppler said the company expects the nonregulated businesses to add to earnings this year, with an estimated 25�/share boost to earnings from Evangeline in 2000 and 40�/share in each year of the agreement thereafter.
Quest Resource Corp. (QRCP), Benedict, Kan., said it has achieved operational status at its new gas compressor station on the interstate pipeline owned by Williams Gas Pipelines Central Inc. near Altoona, Kan. The facility is owned by Ponderosa Gas Pipeline Co. Inc. (PGPC), a QRCP subsidiary. The facility provides access to the interstate gas market for about 90 miles of the PGPC gas gathering pipeline network that was previously served only by local gas market outlets, the company said.
Siemens Power Generation Group (KWU), a unit of Siemens AG, has received orders worth more than $2 billion to supply power generation plants with equipment and services, the company reported. The gas turbines will be manufactured in Siemens facilities in Hamilton, Ont., and Berlin, Germany. Siemens Westinghouse Power Corp. is a Siemens company headquartered in Orlando, Fla. Within Siemens's global fossil power generation business, Siemens Westinghouse is the regional business division for the Americas and operates engineering and manufacturing centers in North America. Customers outside of Germany account for 85% of KWU's business.
BP Amoco PLC reported it plans to purchase natural gas and electricity trader IGI Resources Inc., Boise, Ida., from Intermountain Industries Inc. IGI has sales of about 600 MMcfd of natural gas. It also manages a significant amount of pipeline and storage capacity. The acquisition will become part of the BP Amoco North America Gas & Power business which currently has offices in Houston, Calgary, Chicago, Los Angeles, Toronto, Boston, Mass., and Traverse City, Mich. IGI Resources has offices in Boise, Ida., Seattle, Wash., and Vancouver, Wash. Terms of the transaction, which is subject to regulatory approval and the satisfaction of certain other terms and conditions, were not disclosed.