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A regulatory expert last week called on FERC to impose amoratorium on awarding market-based rates for primarytransportation capacity due to the expected continued “monopoly”nature of major interstate pipelines.

State regulators decided yesterday to perhaps up the ante inconsidering penalties against Pacific Gas and Electric Co. foralleged rules violations in advertising and promotion materials bysome of its unregulated energy affiliate companies.

In one of the first major affiliate abuse decisions to goagainst an unbundling gas utility, the Rhode Island Division ofPublic Utilities and Carriers fined Providence Gas Co. (PGC)$23,000 for violating its affiliate, tariff and numerous otherregulations, and ordered the utility to refund retail gas marketersnearly $300,000.

Mitchell Energy & Development agreed to settle the lastremaining 25 North Texas groundwater lawsuits brought against acompany subsidiary. Plaintiffs alleged in the suits that Mitchell’soil and gas operations in Wise County, TX, affected theirgroundwater.

The futures market again came under heavy selling pressure onWednesday as new bearish technical factors added to the alreadynegative fundamental outlook. The September contract never had achance, managing to post a high yesterday that matched Tuesday’slow, while slipping 6.6 cents to settle at $1.762. Estimated volumesubstantiated the price move, with a whopping 93,150 contractschanging hands.

Marketers lost a battle against LDCs last month when theMichigan Public Service Commission (MPSC) sided with MichiganConsolidated Gas (MichCon) and Consumers Energy in a dispute overfees charged for tracking title to gas that changes hands on theLDCs’ systems. The MPSC found it had no jurisdiction to regulatetitle transfer tracking fees.

Transcontinental Gas Pipe Line defended its 700 MMcf/dMarketLink project against charges it is not supported by themarket because many of its contracts with shippers contain rightsto terminate under certain circumstances. Singling out the protestsand “motions to reject” of CNG Transmission and ConsolidatedEdison, Transco reminded the Commission many of its agreements arenot unlike those filed to support other projects. A few contracts,about 34% of its capacity, are , however, a little different thanwhat has arrived at the Commission in the past, the pipelineacknowledged.

FERC last week denied a complaint in which KN WattenbergTransmission LLC accused a western LDC and pipeline affiliates ofimproperly bifurcating their pipeline projects to sidestepCommission jurisdiction.

Filings before the FERC relating to refund of ad valorem taxesimproperly collected by Kansas gas producers during the 1980squestion whether FERC’s authority overrules that of the statelegislature.