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Industry Briefs

Industry Briefs

American Electric Power and Central and South West Corp. reached a settlement with FERC trial staff that resolves the market power and rate issues relating to the pending merger of the two companies. Under terms of the settlement, AEP would transfer the operation and control of its bulk transmission facilities located in Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and West Virginia to a regional transmission organization (RTO). The settlement also covers rates for transmission services and ancillary services and confirms, subject to FERC guidance on certain elements, that the previously announced generation divestiture program will satisfy the market power concerns of the FERC staff. Once the merger is completed, the new company will be serve 4.7 million electric customers in 11 states.

El Paso Natural Gas' planned Willcox lateral to the Mexican border (CP99-322) will divert up to 130 MMcf/d from mainline service to firm customers in Arizona, according to Southwest Gas. The pipeline has proposed construction of the 55-mile, 20" lateral from the Willcox Compressor station to two points on the border with Mexico to serve two and possibly three power plants. The gas would serve an existing power plant near the City of Hermosillo, another plant to be built in that area and possibly one near the City of Agua Prieta, Sonora, Mexico. Southwest Gas claims the application for the lateral shows a reduction in available capacity used to serve existing El Paso customers. El Paso claims existing customers will not be impacted. The distributor asked FERC for a technical conference and a hearing.

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