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Kinder Morgan Energy Partners, an energy pipeline holding company with roughly $2.7 billion in revenue last year, has entered several interest-rate swaps on the back of two bond offerings. The company used the swaps to convert the entire $625 million it sold through a five- and a 31-year bond into synthetic floater, according to Kinder treasury official in Houston.

Polish power grid operator Polskie Sieci Elektroenergetyczne (PSE) has awarded Citibank the advisory and lead underwriting mandate on a ground-breaking $1.5 billion securitization. Bankers in London say the U.S. giant was hired earlier this month to structure an international bond offering that will securitize a new tax that will be tagged on to the bottom of Polish consumers' electricity bills. PSE conducted a beauty parade among 10 domestic and international banks last month to find an advisor (PFR, 7/8). Regina Wegnerowska, a spokeswoman in Warsaw, did not return calls, and officials at Citi declined to comment.

AmerenUE, a utility subsidiary St. Louis, Mo.-based Ameren Corp., is using a $173 million offering of 5.25%, 10-year notes to refinance existing debt at cheaper levels. The bulk of the money will be used to pay down $125 million of 8.75% first-mortgage bonds due 2021. The net proceeds of $171.4 million are also earmarked to redeem $41.4 million in preferred stock. Calls to Warner Baxter, senior v.p. of finance, were not returned, butSusan Gallagher, spokeswoman, says both early redemptions were driven by the desire to cut funding costs. The underwriters for the notes are Banc of America Securities, Credit Suisse First Boston and U.S. Bancorp Piper Jaffray.

Following is a directory of ongoing generation asset sales. The accuracy of the information, which is derived from many sources, is deemed reliable but cannot be guaranteed. To report new auctions or changes in the status of a sale, please call Will Ainger, managing editor, at (44-20) 7303-1735 or e-mail wainger@euromoneyplc.com .

Calpine has roped in HypoVereinsbank and Bank of Nova Scotia to commit funds to a non-recourse loan funding the construction of a 300 MW natural gas-fired peaking plant in Colorado. The deal for the Blue Bruce Energy Center is around the $100 million mark and is being pitched by lead arranger Credit Lyonnais as a club deal (PFR, 8/5). Calls to Credit Lyonnais, HVB and Scotia were not immediately returned. Pricing and maturity could not be ascertained by press time.

Pepco Holdings, a newly created utility holding company, is looking to cut its roughly $3.3 billion corporate debt load by a significant chunk over the next three years in order to maintain its investment grade rating.Andrew Williams, cfo, told PFR following the completion of Potomac Electric Power's merger with Conectiv earlier this month that the aim is to cut Pepco's debt-to-equity ratio from close to 40% down to the low thirties. "It's important that we maintain a solid investment-grade rating," he argues. Pepco is currently rated BBB/Baa1.

Lead arranger BNP Paribas has launched syndication of a $236 million, two-year non-recourse loan earmarked for the construction of four transmission lines and two substations in Mexico. A project financier close to the matter says he expects syndication to close in the next few weeks, with banks taking tickets ranging from $10-$50 million. He declined to name the lenders BNP has approached, nor would he discuss the structure or pricing details of the project loan. Bankers at BNP declined to comment

Iberdrola has scrapped plans to fund much of a $700 million, 800 MW inside-the-fence gas-fired power project at Vera Cruz on Mexico's Gulf coast in the bank debt market and, instead, will fund it entirely with internal capital. The Spanish utility had originally wanted to employ a 30:70 debt-to-equity mix.

* Calpine said on Monday it would sell 23 million units of its new Canadian Calpine Power Income Fund, raising CAD230 million ($148 million). Calpine said it will hold 29 million trust units for future sales (Reuters, 8/26).

Columbus, Ohio-based American Electric Power is reportedly planning to tap the bond market with a $2-2.5 billion bond offering in the coming months. A banker familiar with the matter says the proceeds of the jumbo debt deal will be used for a variety of purposes, including paying down existing short-term paper in its approximately $4.5 billion debt portfolio. He declined to comment on the likely structure or pricing details of the upcoming deal, nor would he discuss whether AEP has retained a financial advisor. Susan Tomasky, cfo at AEP, did not return calls and David Hagelin, a spokesman, was unaware of the matter and could not ascertain details by press time.