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WP&L Inks Contract Extensions with ANR

WP&L Inks Contract Extensions with ANR

Continuing to push its advantage as the main gas supplier in Wisconsin, Coastal's ANR Pipeline Co. announced last week that Alliant Energy's Wisconsin Power & Light Co. (WP&L) has agreed to extend its transportation and storage service agreements from 2000 and 2003 to 2003 and 2010, respectively. The Public Service Commission of Wisconsin (PSC-W) has approved the agreements. Financial terms were not disclosed.

"With these agreements, Alliant Energy-WP&L joins other major Wisconsin utilities that have extended their contracts with ANR," said Jeffrey A. Connelly, CEO of ANR Pipeline Co. "In the case of Alliant Energy-WP&L, which has direct access to other pipeline alternatives, it's especially gratifying to have them conclude that the ANR system adds significant value."

Although no volumes were disclosed, Alliant said the deals represent 55% of WP&L's transportation capacity and 50% of its storage capacity. The "other pipeline alternative" Connelly described was Northern Natural Gas. An Alliant spokesperson said the company chose ANR because it was the more aggressive company during the negotiation process and it also offered the best deal for its customers.

Northern Natural also has contracts with WP&L. While it could not release the terms of these contracts, a company spokesperson said Northern is happy to have WP&L as a customer and hopes to grow the relationship in the future.

Alliant has been an ANR customer for many years. In 1995, the utility signed a performance-based gas rate plan with ANR. For the five consecutive years since it was adopted, Alliant Energy's innovative gas rate plan has generated more than $12.1 million in bill credits for customers in Wisconsin, ANR said. Customers receive 60% of any savings realized when Alliant Energy's gas traders are able to "beat" the average regional wholesale prices over the course of each year. Overall, WP&L serves 393,000 gas customers.

John Norris

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