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News Digest

Fortnightly Magazine - November 1 1999

of power and risk management products.

Tenaska Georgia Partners L.P. and PECO Energy's Power Team have entered into an agreement for Power Team to purchase the output of a 950-MW natural gas-fueled peaking plant to be constructed southwest of Atlanta, Ga., near Franklin in Heard County. Construction is to begin this winter with completion in late spring 2001. "The Tenaska Georgia Generating Station expands Power Team's national portfolio and further strengthens our abilities to deliver real-time physical power, anytime, anywhere," said Nancy Bessey, president of Power Team. A Tenaska affiliate and Power Team signed a similar agreement in 1997 for Power Team to purchase the output of the 830-MW Tenaska Frontier Generation Station, now under construction in Grimes County, Texas.

Georgia-Pacific has selected NewEnergy as its energy service provider in Pennsylvania, and NewEnergy now supplies electricity to Georgia-Pacific's seven facilities throughout Allegheny Power, GPU Inc., PECO Energy Co. and PP&L territory. "NewEnergy has been serving us in California since we entered that state's competitive market, and we were pleased that their service offerings met our needs in Pennsylvania as well," said Ed Smith, senior utility systems engineer for Georgia-Pacific. Meanwhile, the Illinois Manufacturers' Association has endorsed NewEnergy as the preferred supplier of electricity to its members for Illinois's newly competitive electric market.

CMS Energy Corp. has opened a new office in downtown Denver as part of an ongoing expansion of its business interests in the Rocky Mountain region. The new Denver facility will serve as the main regional office for the Dearborn, Mich.-based company, as well as for the company's exploration and production unit, Houston-based CMS Oil and Gas Co. CMS Energy's director of Western business development, Lanny Waguespack, said the new Denver office reflects the company's plans for a growing presence in the West. "Our long-term strategic plan includes a significant expansion in the Rocky Mountain region. We are aggressively pursuing new energy development opportunities in this area," said Waguespack.News Digest was compiled by Carl J. Levesque, editorial assistant, Lori A. Burkhart and Phil Cross, contributing legal editors, and Bruce W. Radford, editor-in-chief. For continual news updates, see www.pur.com.

Courts

Hydroelectric Licensing. A federal appeals court ruled that the Wisconsin Department of Natural Resources lacked standing to seek rehearing of a FERC order approving six hydroelectric licenses on the state's Flambeau River. The WDNR had sought added wildlife protection, and had intervened in the case to comment on the FERC's environmental impact statement. Wisconsin v. FERC, No. 98-3312, 1999 WL 722253, Sept. 16, 1999 (7th Cir.).

Pipeline Rights of Way. Reversing a trial order for wrongful exclusion of evidence, a California appeals court ruled that when the Southern Pacific railroad sold off a pipeline affiliate in the 1980s, and later agreed with the new owner to renegotiate rental rates at arm's length for use of the railroad right of way, the parties must have contemplated a particular real estate valuation method to set a new rental figure, and not the method required by the judge, which imposed a much lower rental rate.

Thus, the appeals court set aside a $5