CMS Energy said yesterday it plans to hold an open season thatcould determine the fate of all or part of the Trunkline Pipeline.During the open season, which begins today and will end Dec. 15,the pipeline intends to determine how many customers are willing tosign long-term firm transportation agreements at full tariff ratesfor service beginning April 2000.

“An open season is an effective mechanism to determine ourcustomers’ long-term needs and how CMS Trunkline can best meetthose needs,” said Christopher A. Helms, president of CMS PanhandlePipe Line Companies. “The outcome of this open season will help CMSTrunkline plan for the future use of its pipeline assets.”

The company told FERC this summer it was in negotiations withseveral parties regarding a potential sale of one of Trunkline’sthree parallel lines because the pipeline has been eitherunderutilized or utilized at sharply discounted rates and isexpected to suffer more when the Alliance Pipeline comes on linenext winter.

Last summer, Trunkline’s former owner, Duke Energy, had filed tospin-down one of the three 720-mile lines to a subsidiary at netbook value of $10 million. Duke intended to convert the line toflow natural gas liquids from the Aux Sable Liquids Products plantin Illinois to markets in the Gulf Coast region. The 255 MMcf/dsection of pipeline current flows gas from Longville, LA, toBourbon, IL. However, Aux Sable decided not to exercise its optionto use the line and Duke sold Trunkline and Panhandle Eastern toCMS.

For details on the open season contact Trunkline at (800)275-7375 or visit CMS’ web site at www.cmsenergy.com

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.