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Reliant's Firm Peaking Draws Few Complaints

Reliant's Firm Peaking Draws Few Complaints

A proposal by Reliant Energy Gas Transmission (NorAm) for a new hourly firm transportation service and rate schedule to meet peaking needs of the power industry drew few objections in a technical conference at FERC Thursday.

Reliant clarified that the service would not disrupt regular firm transportation and agreed to notify bumped IT and AOS shippers by telephone. Power customers can nominate the service by Internet and it will be confirmed by e-mail.

The proposal, revealed late last month, picked up endorsements from both ends of the pipe at NGI's GasMart/Power'99. Both producer attorney Katherine Edwards and David D'Alessandro, who represents the New York Public Service Commission, agreed it is better to add a specialized type of service to the tariff, making it available to all, than to negotiate with only selected customers. "I want to complement Reliant on doing it this way, not waiting to do it as negotiated terms and conditions but by coming out and filing on a pro forma basis," Edwards said.

Reliant said it is prepared to put the fast on-and-off service in place June 1. "Three years ago, even one and a half years ago, we couldn't have done this," Dale C. Earwood, president of Reliant Energy Interstate Pipelines, said. "The technology wasn't advanced enough. Now we can get good electronic information from our customers on a timely basis and good information on what's happening on the pipeline system." Reliant Energy Transmission has "largely identified a need and has the ability to handle transactions on a short term cycle." While FERC has pushed pipelines to intraday deliveries, "this transcends intraday."

Customers wanting more information about this new hourly service can contact Willie Underwood at (713)-207-5127.

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