Reliant Energy Gas Transmission has filed the first-everpipeline transportation proposal for an hourly service and rates tomeet the increasing swing load and peaking needs of the powergeneration industry.

“We’ve worked hard to get ready to make this available by June1,” Dale C. Earwood, president and COO of ReliantÿEnergy InterstatePipelines, said. While the service is aimed at new merchant powerplants which are installing natural gas-driven turbines for peakpower, “we see increased power needed now at the margin. We aregetting significant peaking load from traditional players already.”

Electronic technology has finally made possible the fast on-andoff-service that power customers have been requesting for years.”Three years ago, even one and a half years ago, we couldn’t havedone this,” Earwood said. “The technology wasn’t advanced enough.Now we can get good electronic information from our customers on atimely basis and good information on what’s happening on thepipeline system.” Reliant Energy Transmission has “largelyidentified a need and has the ability to handle transactions on ashort term cycle.” While FERC has pushed pipelines to intradaydeliveries, “this transcends intraday.”

According to the proposed rate filing at the Federal EnergyRegulatory Commission, customers will use electronic bulletinboards to nominate service. Responses will be delivered by e-mail.The company filed a new Rate Schedule Hourly FirmÿTransportation(HFT) April 12 with a proposed effective date of Juneÿ1, 1999.ÿ

“Our new hourly service is designed to allow power generatorsand other customers toÿbetter match the pipeline capacity theyreserve with the service they need as their load requirements varythroughout theÿday,”ÿEarwood said, adding that he was not aware ofany other pipeline offering this type of service. The rates will bederived from the existing firm rate schedule although they arelikely to be market responsive to allocate peak capacity. “We’rehopeful we’ll have considerable support from the electricgenerating industry. I don’t foresee any problems at this time.”

Customers wanting more information about this new hourly servicecan contact Willie Underwood at (713)-207-5127.ÿ

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