The Public Utilities Commission of Ohio (PUCO) has approved interim gas cost recovery (GCR) rates for Columbia Gas of Ohio, Dominion East Ohio and Cincinnati Gas & Electric (CG&E). The rates are for the pass-through gas commodity portion of retail customer bills and reflect the cost of gas each quarter. Columbia’s interim GCR rate is $8.7063/Mcf for the month of April 2003. Dominion’s interim GCR rate is $7.052/Mcf for the month of April 2003, and CG&E’s interim GCR rate is $6.605/Mcf for the months of April and May 2003. The GCR enables the utility to correct for any over or under-collections of natural gas costs in previous periods. The PUCO audits the utility companies to ensure that no profit or loss is made on the price charged to consumers for natural gas and that the utilities strive to purchase reliable and economic gas supplies. Ohio’s natural gas utilities earn their profits through the distribution of gas. The interim rates approved by the commission reduce the likelihood of a large future adjustment for any over- or under-recovery of gas costs resulting from the companies’ initially filed GCR rates. In December and January, the filed quarterly GCR rates were $7.5774/Mcf for Columbia, $6.006/Mcf for Dominion and $5.988/Mcf for CG&E. For more information, visit the PUCO web site at www.PUCO.ohio.gov.

CMS Energy said Tuesday that it has received approval from a consortium of banks to extend the maturity date of a revolving credit facility from March 31 to the earlier of June 30, 2003 or the closing date of the sale of CMS Panhandle Companies. In late December (see Daily GPI, Dec. 24, 2002), Southern Union Co. and AIG HighStar Capital LP reached a definitive deal to buy CMS Energy’s Panhandle natural gas pipelines and liquefied natural gas (LNG) facilities for an estimated $1.83 billion. CMS Energy noted that its credit facility had an original obligation of $295.8 million, of which $172 million has been paid down.

In its first financial report since going public, Dallas-based Crosstex Energy LP reported positive annual and quarterly financial results and progress on its growth track, which has included several recent pipeline and processing plant acquisitions. Fourth quarter 2002 net income was $0.5 million compared to a net loss of $6.6 million for the same quarter in 2001, which was negatively impacted by a $5.7 million charge associated with the Enron bankruptcy. Gross margins were $8.7 million for the fourth quarter of 2002, compared to $8.1 million in the fourth quarter of 2001. For the year, gross margins were $32.7 million compared to $24.2 million, and net income was $2 million compared to a net loss in 2001 of $3.9 million. Distributable cash flow for 2002 was $11.8 million compared to $3.1 million in 2001. In 2002, pipeline throughput increased 25% to 392,608 MMBtu/d, gas processed increased 41% to 85,581 MMBtu/d and treating plants in operation increased to 35 from 30. “We integrated several key acquisitions, giving us better coverage of the Texas Gulf Coast area and expansion into the Florida market,” said CEO Barry E. Davis. “Since our IPO, we have acquired two new assets that will be significant contributors to our future. We continue to see growth opportunities in the midstream sector.” The company recently formed a joint venture to build a new gathering system to gather Barnett Shale natural gas production in Denton County, TX. It also started selling natural gas to Florida markets after making connections to portions of the Florida Gas Transmission system that it purchased in June 2002. Crosstex also recently completed the acquisition of the remaining 50% interest in the Will O Mills treating plant in Val Verde County, TX.

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