Agreement

A settlement agreement that resolves all of the outstandingissues in Southern Natural Gas Co.’s Section 4 rate case wasapproved by the Federal Energy Regulatory Commission (FERC) lastweek. It puts in place a cost-of-service reduction of $42 million,a 12% return on equity and allows Sonat to fold the South GeorgiaNatural Gas pipeline into its own operations.

FERC yesterday approved the settlement agreement that resolvesall of the outstanding issues in Southern Natural Gas Section 4rate case. It puts in place a cost-of-service reduction of $42million, a 12% return on equity and allows Sonat to fold the SouthGeorgia Natural Gas pipeline into its own operations.

New York Board of Trade reached an agreement last week to “makewhole” all floor operators whose funds were used to meet marginobligations of Klein and Co. Futures Inc.

New York Board of Trade reached an agreement last week to “makewhole” all floor operators whose funds were used to meet marginobligations of Klein and Co. Futures Inc. NYBOT said it will payback the innocent traders and customers of Klein. NYBOT’s decisioncame not long after the New York Mercantile Exchange and 15 of itsmembers filed a class action complaint against NYBOT, New YorkClearing Corp. (NYCC) and Klein, alleging that NYBOT improperlyused funds of Klein customers who also traded Nymex energy, oil andmetals contracts to satisfy obligations of an unrelated Kleincustomer on the New York Futures Exchange, a unit of NYBOT.

Under a new agreement between The New York City HousingAuthority and Unitil Corp, gas provided to thousands of homes inNew York City will be purchased from a supplier in onlinetransactions.

DTE Energy Technologies, an unregulated subsidiary of DTE EnergyCo., reached a distribution agreement with Waukesha, WI- basedGENERAC Power Systems, a manufacturer of prepackaged standby powersystems for homes and small businesses.

If El Paso continues on its current path, there may be nopipelines left to buy. After announcing an agreement to merge withCoastal Corp. only a week earlier, the Houston-based energy giantannounced two more major purchases last week.

Despite weaker cash prices, mixed weather forecasts and a loweropen, natural gas futures rumbled higher last Friday as traderscovered shorts in a technical frenzy that could pave the way formore gains this week. The prompt March contract finished up 8.3cents at $2.742 after posting a $2.62 low near the open.

Maritimes & Northeast Pipeline, L.L.C. announced anagreement yesterday with Bangor Gas Co. to transport up to 85,000Dth/d from the Maritimes facilities to Bangor Gas’ proposeddistribution facilities in Veazie, ME, and Bucksport, ME.