ANR Pipeline, charging Wisconsin Public Service Commissionfilings by Wisconsin Gas for the Guardian Pipeline project wereunlawfully kept secret, is suing the PSC in Dane County, WI,Circuit Court. ANR wants the court to reverse and set aside PSCorders conditionally approving Guardian. ANR seeks remanding of thecase and the opportunity to intervene in a contested case hearing.

Guardian would be a 147-mile interstate from the Chicago hub toWatertown, WI. Wisconsin Gas is proposing a 35-mile lateral toconnect its system to Guardian in the Milwaukee area. The pipeline,which would compete against ANR, is expected to cost $230 millionand the lateral $45 million. Wisconsin Gas would own 30% of thepipeline and 100% of the lateral. Guardian is owned by WisconsinGas parent WICOR, CMS Energy, and Viking Gas Transmission .

The LDC has executed a precedent agreement with Guardian for 650MMcf/d of firm capacity that would displace capacity held byWisconsin Gas on ANR. ANR maintains it can more cheaply build anynew capacity needed to meet the needs of Wisconsin Gas and othersin Wisconsin.

ANR says the cost of the redundant Guardian and the lateralwould be unfairly borne by ratepayers, to the tune of $175 millionover 10 years. Wisconsin Gas says the project would save ratepayers$100 million over its first 10 years. ANR says the project wouldresult in “significant, unnecessary environmental disturbances andlandowner disruption.”

The PSC refused to allow ANR to participate in Guardianproceedings, denied ANR access to documents and secretlyconditionally approved the precedent agreement “based onself-serving conclusory statements by WGC concerning the benefitsof the Guardian Project,” the pipeline says.

Wisconsin Gas’ response to the suit is somewhat akin to “what’ssauce for the goose is sauce for the gander.”

“First of all, the supply contract that Wisconsin Gas filed withthe PSC is confidential, and information in it could aid acompetitor,” said Wisconsin Gas spokesman David Fantle. “Other ANRcustomers filed these confidential agreements with the PSC, and inthose cases ANR did not complain because the process benefits theirbusiness interests.

“Shame on ANR. They filed the same kind of supply contracts withthe PSC, and they should understand the confidential nature ofthese type of filings. We believe the PSC followed all theappropriate procedures when reviewing the Wisconsin Gas filing. Thetime for a full public review of the project will come whenWisconsin Gas files an application for its lateral project with thePSC in the fall of this year. This is just another stall and delaytactic from ANR because their monopoly status is in jeopardy andGuardian represents lower prices and true competition.”

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