The sponsors of Independence Pipeline and the associatedSupplyLink expansion project informed FERC on Friday that theyaccepted the mid-July decision awarding them certificates toconstruct their controversial Midwest-to-East Coast pipelineproject. The order is still subject to rehearing at the Commissionand then possibly to a court review. Combined, the two projects —SupplyLink, an upstream expansion of sponsor ANR Pipeline’sexisting system; and Independence, a 400-mile greenfield pipelinefrom Defiance, OH, to the Leidy Hub — would add about 1 Bcf/d ofwest-to-east firm transportation capacity at $803 million, servingthe growing gas needs of power generators in the east andNortheast. Partners in Independence are ANR, Williams’Transcontinental Gas Pipeline and National Fuel Gas Co.Independence and SupplyLink projects are targeted for in-service inNovember 2002.

The number of rigs exploring for oil and natural gas in NorthAmerica fell by 28 during the week ending Aug. 11, with Canadataking the biggest hit, down 23 rigs, according to Baker HughesInc. The U.S. rig count was down by five, standing at 976, comparedwith last year’s 627, while Canada’s slipped to 312, compared with277 a year ago. Louisiana lost eight, while New Mexico and Oklahomaeach lost four rigs. In the Gulf of Mexico, the rig count fell bytwo to 155, and overall, the number of rigs operating offshore fellby two to 159. Inland water rigs fell by two to 12, while thenumber of U.S. rigs exploring on land grew by one to 805. U.S. gasrigs took the biggest hit, falling by seven to 805. Baker Hughessaid there were 241 U.S. rigs exploring directionally, down two; 55exploring horizontally, down two; and 680 exploring vertically,down one.

St. Joseph Light & Power announced that its 97 MW naturalgas-fired generator at its Lake Road plant in St. Joseph, MO, thatwas damaged by fire on June 7, has been restored to service about amonth ahead of schedule. The generator, which accounts for morethan 25% of the company’s electric system requirements, cost about$4 million to restore to service, including the inflated cost ofreplacement electricity which the company had to purchase forcustomer demand. As a result, the company has filed an applicationfor an Accounting Authority Order with the Missouri Public ServiceCommission in an attempt to defer the incident’s expenses. Thecompany will also attempt to seek recovery as part of its nextelectric general rate case. If the pending merger with UtiliCorpUnited succeeds, a portion of the costs likely will be expensed. StJoseph Light & Power serves approximately 63,000 electriccustomers in Missouri.

Des Moines-based MidAmerican Energy is gearing up for thestart-up of natural gas and electricity deregulation in Ohio. Thecompany recently opened the doors of its new office in Beachwood,OH,. Ohio is the fourth-largest energy market in the nation withestimated annual revenues of $10.2 billion from 4.4 millionelectric customers, and about $4.3 billion from 3.3 million gascustomers. Only Texas, California and Florida are greater. Ohiocustomers will be able to choose their natural gas service on Nov.1, while electric customers will get to choose their service onJan. 1, 2001. Ohio marks MidAmerican Energy’s second venture into aderegulated energy market. Over the past year the company sold onebillion kWh of electricity, and 10 Bcf of gas in the competitiveenergy markets in Illinois.

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