Utilities continue to struggle with high commodity prices as evidenced most recently on Friday when the Public Service Electric and Gas Co. (PSE&G) filed a petition with the Board of Public Utilities (BPU) requesting an increase in gas base rates of $171 million for gas delivery service. The requested increase would result in an overall gas revenue increase of 7.06% to reflect current costs. PSE&G last filed for an increase in base rates in November 1991. PSE&G said that present gas rates will remain in effect until new rates are approved by the BPU. PSE&G is New Jersey’s oldest and largest regulated gas and electric delivery utility, serving 3.5 million customers.

Vancouver-based Westcoast Gas Services Inc., a subsidiary of Westcoast Energy Inc., has sold its Jedney Expansion and Highway gas processing plants and related gas gathering lines to JJH Equipment Trust for C$201 million. It also has entered into an operating lease agreement for the equipment. The lease gives Westcoast Gas Serviced full operating control, with the lease obligations guaranteed by Westcoast. JJH Equipment Trust has financed the acquisition and associated expenses with five-year senior secured note units. Under the agreement, Westcoast Gas Services may re-acquire the equipment on certain dates as well as at the end of the lease agreement. Westcoast plans to use the proceeds from the agreement to retire some of its debt.

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