While Oklahoma Natural Gas’ (ONG) appeal of the OklahomaCorporation Commission’s interim order unbundling its upstreamsystem winds its way through court, the OCC has turned to Arkla andthe unbundling of its downstream system. Arkla will have its fourthopen meeting with the commission and other interested parties Nov.17. OCC Commissioner Bob Anthony is enthusiastic about how thingshave gone so far. “They [Arkla] have not just claimedconfidentiality on everything. It’s been very open and detailed. Idon’t normally go around bragging about utilities. I’ve asked somestaff people if everything’s operating in good faith and they’vegiven me some encouragement.”

So far, Arkla is on track to meet its April 1, 1999 deadline forfiling an unbundling plan. It is hoped transportation-onlyresidential and commercial customers will be signing up withmarketers by the end of summer 1999. Arkla’s system ispredominantly residentials and commercials.

So far, Arkla is on track to meet its April 1, 1999 deadline forfiling a downstream unbundling plan. It is hoped Arkla’s 115,000Oklahoma customers, mostly residentials and commercials, will besigning up with marketers by the end of summer 1999. Arkla has nostorage, peak shaving or compression, so marketers can enter theArkla system with less utility baggage.

The company’s upstream already is unbundled. In 1985, Arklasplit its transmission and distribution operations. Its pipelineoperations have been FERC jurisdictional for the last six years.Arkla has been buying capacity on its own accord and making its ownsupply arrangements since the implementation of FERC Order 636.

The details of Arkla’s unbundling were first touched on at itsthird commission meeting Oct 20. Topics hit uponto date includeterms and conditions for marketers, allocation of receipt pointcapacity and capacity assignment. Ken Zimmerman, OCC public utilitydivision planning coordinator, said the third meeting had thelargest attendance to date.

Showing up were big marketers, such as Enron and PG&ampE, aswell as smaller companies, such as Transok, Enogex and even smallercompanies such as e prime and Stalwart Energy. “These meetings havebeen actually pretty non-eventful,” Zimmerman said.

“The next meeting is going to focus on both consumer education,which experience in Ohio and Georgia suggests is very important,and the tax implications involved,” said Paul Ruxin, a lawyer withJones, Day, Raevis &amp Pogue, representing Arkla.

As for upstream unbundling on ONG, the commission is preparingdocuments for the Oklahoma Supreme Court, which recently agreed tohear ONG’s appeal of the OCC’s interim unbundling order. ONGmaintains its challenge to the order is not a challenge tounbundling. To make its point, the company has competitively bidabout 28 Bcf of gas supply for the winter heating season. Thatrepresents about a third of its system’s winter requirement,according to spokesman Don Sherry. Joe Fisher, Houston

©Copyright 1998 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.