Western Gas Resources-California last week applied to the
California Public Utilities Commission to operate a California
utility. Western-California, a subsidiary of Western Gas Resources,
has acquired an option to buy the Steelhead Pipeline System and
portions of the Sacramento River Gas System in northern California
for an undisclosed sum. Western is seeking to change the systems'
status from proprietary to public utility.
The pipelines would be operated on an open-access basis. Western
said the pipes are well positioned to serve some of the large
incremental gas loads required for proposed power generation
projects in Contra Costa County, CA. Western is considering adding
compression and an interconnection with Pacific Gas &
Electric's backbone system to increase throughput to fully utilize
the systems. An open season is planned for next month. If Western
chooses to acquire the pipes, closing is expected in early 2000.
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