Adding another building block to its long hoped for pipelinethrough Wisconsin and Illinois, Guardian Pipeline signed anagreement with IPSCO Inc. to manufacture and deliver steel pipe forthe proposed 149 mile-long pipeline. IPSCO will begin producing thepipe next fall to complement Guardian’s construction, which isexpected to get under way by early 2002. Though regulatory approvalis still to come, the agreement brings Guardian’s project closer toreality. In July, FERC concluded Guardian would have “limitedadverse impact,” and would be acceptable as long as appropriatemitigation measures were adopted. FERC is expected to make a finaldecision on the project by early next year. Guardian will transportgas from interconnections with Alliance, Northern Border,Midwestern Gas Transmission and the Natural Gas Pipeline of Americaat the Chicago Hub near Joliet, IL to northern Illinois andsouthern Wisconsin markets.

Avista Corp. yesterday said that the Washington Utilities andTransportation Commission (WUTC) has approved its request for adeferral of power costs related to the recent increases inshort-term wholesale power market prices. The WUTC order allowsAvista, based in Spokane, WA, to defer for later review andrecovery, purchased power costs needed to met retail electric loadsbetween July 1, 2000 through June 30, 2001. WUTC also agreed towaive the normal time limits related to go to the market to seewhat options may be available to develop new generation sources.The waiver allows Avista to increase its current short position inpower generation. Avista Utilities still awaits a decision by WUTCon its natural gas general rate case, a decision expected in lateSeptember.

Avista Corp. brought on line a 60 MW gas turbine power plantlocated in Spokane, WA, following an energy supply alert ordered byWashington Gov. Gary Locke. Avista’s subsidiary Avista utilitieswill use the plant to increase capacity for its electric customersand to provide a portion of the load to Bellingham Cold Storage.Bellingham stores fruits and fisheries harvests and is in risk ofcurtailment due to recent spikes in wholesale power costs. Thereserve plant will remain in operation for the length of the 30 dayorder. “Governor Locke’s order makes available another 60 MW ofpower during a time of extremely tight power supplies. This shouldhelp minimize some long- term price risks to Avista Utilitiescustomers and assist a key Whatcom county employer that has fallenvictim to power price spikes,” said T.M. Matthews, CEO of AvistaCorp.

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