BC Gas said it will file another application with the BritishColumbia Utilities Commission (BCUC) for its previously deniedSouthern Crossing Project and said a recent open season garneredinterest exceeding available capacity.

In April, the BCUC voted down the $350 million pipeline thatwould have paralleled the BC Gas mainline in southern BritishColumbia between Yahk and Oliver (See NGI April 8, 1998). Thecommission said “projected growth in demand from residential andcommercial customers alone on the BC Gas system were not sufficientto justify the large capital expenditures at this time.” However,BC Gas was ordered to look into marrying the seasonal and peakingneeds of its customers with those of new thermal generation plantsof BC Hydro.

BC Gas said it is pursuing possibilities for third-partyrevenue, including BC Hydro or others. Open season respondentscould be suppliers of gas to BC Hydro, BC Gas and other purchasersin British Columbia. Once BC Gas contracts capacity to BC Hydro, itcould purchase some of the capacity back during peak demand periodsfor gas.

Northwest Pipeline and Westcoast Energy each have projects inthe works to compete with Southern Crossing and serve the PacificNorthwest.

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