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Indiana Commission Approves Heartland Intrastate

October 10, 2005
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The Indiana Utility Regulatory Commission (IURC) last Wednesday approved authorization for the Heartland Gas Pipeline, a $17 million, 26-mile line with access to storage and the Chicago Hub. The project is designed to provide central Indiana with access to gas from Canada and the West.

The 16-inch diameter Heartland system would gain access to the Chicago hub and western gas through its connection with Midwestern Gas Transmission in Sullivan County, IN. Heartland Gas, a 50-50 joint venture with subsidiaries of Citizens Gas & Coke Utility of Indianapolis and ProLiance Energy, would be run by Citizens Gas and would connect with Citizens' storage facilities in Greene County, IN.

The line would have a capacity of about 80 MMcf/d. Sponsors said the line would lower the cost of gas for customers in central Indiana, which currently are served with Gulf Coast supplies through Panhandle Eastern Pipe Line and Texas Gas Transmission. Heartland Gas Pipeline also would enable Citizens Gas to more efficiently utilize its gas storage facilities and the 65-mile pipeline that transports gas from the storage facilities to Indianapolis.

While sponsors for the project, which was filed in September 2004, had hoped to have it in service for this coming winter, because of the time taken in the regulatory process, now are planning to start construction next spring and have it in service before the 2006-2007 winter.

Citizens Gas & Coke Utility is a Public Charitable Trust, a non-profit entity, providing services to more than 266,000 customers in Marion and Hamilton Counties, IN. Founded in 1996, ProLiance Energy is a large natural gas marketer conducting business in 18 states, with offices in Indiana, Illinois, Ohio, Michigan, Kentucky and Texas. It has more than 1,200 utility, municipal, industrial and commercial customers.

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