Continuing to push its advantage as the main gas supplier inWisconsin, Coastal’s ANR Pipeline Co. announced last week thatAlliant Energy’s Wisconsin Power & Light Co. (WP&L) hasagreed to extend its transportation and storage service agreementsfrom 2000 and 2003 to 2003 and 2010, respectively. The PublicService Commission of Wisconsin (PSC-W) has approved theagreements. Financial terms were not disclosed.

“With these agreements, Alliant Energy-WP&L joins othermajor Wisconsin utilities that have extended their contracts withANR,” said Jeffrey A. Connelly, CEO of ANR Pipeline Co. “In thecase of Alliant Energy-WP&L, which has direct access to otherpipeline alternatives, it’s especially gratifying to have themconclude that the ANR system adds significant value.”

Although no volumes were disclosed, Alliant said the dealsrepresent 55% of WP&L’s transportation capacity and 50% of itsstorage capacity. The “other pipeline alternative” Connellydescribed was Northern Natural Gas. An Alliant spokesperson saidthe company chose ANR because it was the more aggressive companyduring the negotiation process and it also offered the best dealfor its customers.

Northern Natural also has contracts with WP&L. While itcould not release the terms of these contracts, a companyspokesperson said Northern is happy to have WP&L as a customerand hopes to grow the relationship in the future.

Alliant has been an ANR customer for many years. In 1995, theutility signed a performance-based gas rate plan with ANR. For thefive consecutive years since it was adopted, Alliant Energy’sinnovative gas rate plan has generated more than $12.1 million inbill credits for customers in Wisconsin, ANR said. Customersreceive 60% of any savings realized when Alliant Energy’s gastraders are able to “beat” the average regional wholesale pricesover the course of each year. Overall, WP&L serves 393,000 gascustomers.

John Norris

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