Columbia Gas Transmission is conducting an open season to test the level of interest in moving Midcontinent gas collected by other pipelines into its Ohio territory to serve the growing power generation load.

While Columbia has fielded queries from both the market and supply side, “we want to find out the true level of interest in moving gas further east to more premium markets than Chicago,” said Brian Fowler, manager, market development. “We’re trying to define receipt points on other pipelines and delivery points on our system.” Over 2,400 MW of new generating capacity went into operation in Columbia’s market area in the last year and projects for another 6,000 MW have been announced. In addition, “some of our LDCs have growth forecasts.”

The unique pipeline-to-pipeline arrangement will provide transportation from off-system receipt points extending from the Chicago Hub to the Mid-Continent production area, to delivery points in Columbia’s Ohio Market Areas 1 through 9 and 15. The open season period will commence Friday, Oct. 12, and close at 4:30 p.m. EST on Friday, Dec. 14, 2001.

For instance, “between CMS Panhandle and Columbia there is existing capacity available, depending on receipt points,” Fowler said. Shippers might line up some existing capacity and add in expansion capacity “which could result in an attractive price.” Columbia has a number of connections with CMS Panhandle.

“This open season is intended to test the interest of shippers in delivering natural gas supplies into the western part of our system via a connected path from as far west as CMS Panhandle Companies’ Mid-Continent production zone and the Chicago Hub area,” said David Pentzien, vice president of Marketing for Columbia Gas Transmission. “Over the past year, we have seen a growing interest in capacity availability into Ohio from western edge receipt points.”

According to Pentzien, this interest has come both from end-users, including the many power plants that are being developed in Ohio, as well as supply-based shippers seeking a better pricing basis that supports extending their transportation path into Columbia’s system in Ohio. “This is an excellent opportunity to work together with CMS Panhandle to create the path,” he said.

“By capitalizing on CMS Panhandle’s assets and interconnections with Columbia’s system, we can offer the Ohio market area attractive alternative supply sources back to the Mid-Continent basin and the Chicago Hub area, at what we believe will be competitive transportation prices,” said Keith Meyer, vice president of Marketing for CMS Panhandle Companies.

Columbia is proposing to make available to interested parties, transportation services in its Market Areas 1 through 9 and 15 under its Firm Transportation Service (FTS) Rate Schedule. Columbia will also consider requests for summer seasonal service (April-October), where practical.

“We will look to the customer to determine the receipt and delivery points, then design the contiguous service, combining Columbia’s, CMS Panhandle’s and other off-system capacity as will be required,” Columbia’s Fowler said. “Determining an exact route based on nominations will enable us to minimize capital expenditures while maximizing customer value.”

Fowler said the suggested minimum contract term would be 10 years. Rates will be dependent on customer nominations and the need for system enhancements.

During the open season, parties wishing to express an interest in the Midwest Expansion are invited to submit a bid package, which may be obtained from Columbia’s Navigator electronic bulletin board ( www.columbianavigator.com), or by contacting Fowler at 703-227-3277 or at bwfowler@nisource.com.

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