Nova Scotia regulators kicked off competition for gasdistribution rights in the province last week, and so far fourplayers have come forward with plans to deliver the first SableIsland gas production to come ashore next fall. A Sempra Energysubsidiary; Scotia Advantage, a partnership of Consumers Gas andNova Scotia Power; Sask Energy; and Maritimes NRG all plan tosubmit proposals to distribute gas in the province.

The Nova Scotia Utilities and Review Board, however, is expectedto give only one of the companies exclusive franchise rights for aprovince-wide distribution system. Each company will be given anopportunity to pick apart the plans of the others in a publichearing slated for next spring. The franchise is expected to beawarded next summer.

Nova Scotia regulators have required that companies submitproposals designed to deliver gas to 62% of the population withinseven years. The regulatory body is taking a unique approach to gasdistribution, by requiring unbundled gas sales and transportationfrom the start. No distributor will be allowed to engage incommodity sales, which are expected eventually to reach about 500MMcf/d. Nova Scotia has a population of about 900,000. According toZiff Energy’s Rick DeWolf, a consultant to the Nova Scotia board, adistribution project in the province is expected to cost $220-$500million to build.

Andrew Rea, president of Sempra Atlantic Gas, said his company”has the experience and financial resources to bring low-costnatural gas to Nova Scotians in the quickest time frame possible.”Sempra has been the most active company building start-updistribution systems in recent years. Including Nova Scotia, it nowhas three start-up distribution operations in development or inplanning stages in North America. Sempra subsidiary Frontier Energyis beginning gas service to 150,000 homes and businesses in aseven-county area in North Carolina this month. And through itsBangor Gas partnership with Bangor Hydro, it is breaking ground inMaine for a distribution system that also will begin service nextfall.

Franchise applications are due Jan. 29. The Utilities and ReviewBoard plans to hold hearings April 12 and make recommendationsshortly thereafter to the provincial cabinet, which will make afinal decision on the matter next summer.

Rocco Canonica

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