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Western Seeking CA Utility Certificate

Western Seeking CA Utility Certificate

Western Gas Resources-California last week applied to the California Public Utilities Commission to operate a California utility. Western-California, a subsidiary of Western Gas Resources, has acquired an option to buy the Steelhead Pipeline System and portions of the Sacramento River Gas System in northern California for an undisclosed sum. Western is seeking to change the systems' status from proprietary to public utility.

The pipelines would be operated on an open-access basis. Western said the pipes are well positioned to serve some of the large incremental gas loads required for proposed power generation projects in Contra Costa County, CA. Western is considering adding compression and an interconnection with Pacific Gas & Electric's backbone system to increase throughput to fully utilize the systems. An open season is planned for next month. If Western chooses to acquire the pipes, closing is expected in early 2000.

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