Independence Pipeline and ANR Pipeline are offering a newnegotiated basis rate option for shippers who sign on for 10 yearsstarting Nov. 1, 2002 for firm transportation from Chicago to theLeidy Hub in Pennsylvania.

Interested shippers must provide the required information to ANRregarding its Supplylink expansion and to Independence by Friday, June9. The pipelines said the new offering for up to about a third of theproposed 1 Bcf/d capacity of Independence is in response to a FederalEnergy Regulatory Commission order giving them 60 days to show marketsupport for the 400 mile-long pipeline project. (See Daily GPI, April 26)

“The Negotiated Basis Rate on each pipeline will be comprised ofa negotiated monthly demand charge and a negotiated commoditycharge incorporating a “sharing factor percentage (plus fuelretention and applicable surcharges),” the pipelines said in asolicitation issued last week.

The charge would be calculated based on a complex formulaincorporating daily basis quotes between Chicago and Leidy.Questions about the proposed rate may be addressed to Jeff Keck(313) 496-5674 for Supplylink or Ron Kraemer (716) 857-7536 forIndependence.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.