WP&L Inks Contract Extensions with ANR
Continuing to push its advantage as the main gas supplier in
Wisconsin, Coastal's ANR Pipeline Co. announced last week that
Alliant Energy's Wisconsin Power & Light Co. (WP&L) has
agreed to extend its transportation and storage service agreements
from 2000 and 2003 to 2003 and 2010, respectively. The Public
Service Commission of Wisconsin (PSC-W) has approved the
agreements. Financial terms were not disclosed.
"With these agreements, Alliant Energy-WP&L joins other
major Wisconsin utilities that have extended their contracts with
ANR," said Jeffrey A. Connelly, CEO of ANR Pipeline Co. "In the
case of Alliant Energy-WP&L, which has direct access to other
pipeline alternatives, it's especially gratifying to have them
conclude that the ANR system adds significant value."
Although no volumes were disclosed, Alliant said the deals
represent 55% of WP&L's transportation capacity and 50% of its
storage capacity. The "other pipeline alternative" Connelly
described was Northern Natural Gas. An Alliant spokesperson said
the company chose ANR because it was the more aggressive company
during the negotiation process and it also offered the best deal
for its customers.
Northern Natural also has contracts with WP&L. While it
could not release the terms of these contracts, a company
spokesperson said Northern is happy to have WP&L as a customer
and hopes to grow the relationship in the future.
Alliant has been an ANR customer for many years. In 1995, the
utility signed a performance-based gas rate plan with ANR. For the
five consecutive years since it was adopted, Alliant Energy's
innovative gas rate plan has generated more than $12.1 million in
bill credits for customers in Wisconsin, ANR said. Customers
receive 60% of any savings realized when Alliant Energy's gas
traders are able to "beat" the average regional wholesale prices
over the course of each year. Overall, WP&L serves 393,000 gas
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