A 14% rate increase to cover South Carolina Electric & Gas Co.’s (SCE&G) purchased gas costs, was approved by the South Carolina Public Service Commission. The Scana Corp. subsidiary said it is expecting sharply higher gas prices this winter to drive up wholesale purchase costs. The utility passes through to retail customers its cost of buying gas. “Natural gas prices on the wholesale market are expected to increase almost 20% in the coming months and that’s why this rate adjustment is necessary,” said Keller Kissam, SCE&G’s vice president of natural gas operations. Kissam cited the rising cost of oil and the forecasts for a colder than normal winter as reasons why wholesale costs are expected to be higher. SCE&G was granted an increase from 59.65 cents a therm to 72.79 cents per therm. The increase will appear on customer bills beginning in November. For a natural gas customer who uses 100 therms per month during the winter heating season, this means a monthly increase of $13.20 from $92.49 to $105.69. During the non-heating season, when typical usage is 25 therms a month, customers can expect to see monthly increases of about $3. SCE&G’s gas distribution system serves 267,000 customers in 34 counties of South Carolina.

EOTT Energy Partners LP’s general partner, EOTT Energy Corp., filed for Chapter 11 bankruptcy protection in order to join in the voluntary, pre-negotiated restructuring plan that EOTT Energy Partners and its subsidiaries filed Oct. 9 (see Daily GPI, Oct. 10). EOTT Energy Partners LP is a crude oil and gas liquids marketing and transportation affiliate of Enron Corp. The partnership said its voluntary, pre-negotiated restructuring plan will give it an extra $100 million in working capital, and allow it to restructure debt and to continue operating normally. EOTT intends to rapidly emerge from bankruptcy as a legally separate company from Enron in early 2003. An Enron settlement agreement that is part of the plan provides for complete legal separation from EOTT upon confirmation of the reorganization and a $1.25 million payment to Enron. All of Enron’s claims against EOTT, which exceed $50 million, will be eliminated in exchange for a $6.2 million note to Enron. Additionally, EOTT has agreed it will no longer pursue claims against Enron Corp. or attempt to recover any amounts payable to EOTT.

Fort Chicago Energy Partners LP announced that it is buying for C$132 million about 7.2% of both the Canadian and U.S. segments of the Alliance Pipeline and 4.9% of Aux Sable and Alliance Canada Marketing by assuming 50% of El Paso Corp.‘s original interest in the pipeline and other entities. El Paso currently owns 14.4% of Alliance Pipeline, Aux Sable and Alliance Canada Marketing. The purchases were made pursuant to Fort Chicago’s right under an agreement with Enbridge that was announced in September. Enbridge will purchase the balance of the El Paso interests. Fort Chicago expects to close most of its purchase in the fourth quarter. Fort Chicago also announced that it received commitments from three Canadian chartered banks for an underwritten acquisition credit facility totaling C$250 million to finance its acquisition of a 12.2% interest in the Alliance Pipeline from subsidiaries of The Williams Companies. The credit facility is for a one-year term, and the closing of the Williams acquisition is expected to occur on Oct. 31. Fort Chicago is a limited partnership which, together with its affiliates, presently owns a 26% interest in the Alliance Pipeline, Aux Sable and Alliance Canada Marketing. Upon the conclusion of the Williams and El Paso acquisitions, Fort Chicago expects to own a 38.2% interest in Alliance and a 30.9% interest in Aux Sable and Alliance Canada Marketing.

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