Columbia Energy Services and the Municipal Gas Authority of Mississippi (MGAM) signed a 10-year gas supply contract that calls for MGAM to buy 10 billion Btu/d, or about 10 MMcf/d. “This acquisition provides firm economic supplies for our participating municipal gas systems and will assist them in meeting the needs of their customers,” said Neil Davis, MGAM general manager. ” MGAM, which represents 20 public agencies, provides gas supply and related services to municipalities that own and operate gas distribution systems in Mississippi.
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Unocal Inks Deal for Advance On 10-Year Contract
Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract. The deal with Unocal follows a similar transactionPEAK negotiated with Marathon for supply this winter.
Unocal Inks Supply Deal with KY Munis
Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract.
Virginia Power Seeks Gas-Fired Relief from the Heat
Virginia Power asked the State Corporation Commission Tuesdayfor authority to build and operate five natural gas-firedcombustion turbines to generate power for the utility’s two millioncustomers during peak demand periods.
Move Afoot to Modify PURPA contracts
New York State Electric & Gas Corp. (NYSEG) voiced itssupport for legislation to give states authority to modifynon-utility generator contracts. Congressmen Gerald Solomon, AmoryHoughton (R-NY) and Edolphus Towns (D-NY) introduced HR 4183, whichwould clarify the Public Utility Regulatory Policies Act of 1978.Changes proposed are said to ensure just and reasonable costs forNUG power sold to utilities. State regulators would be permitted tomodify prices utilities are currently required to pay non-utilitygenerators so they do not exceed the market price of electricity atthe time of delivery. The legislation also would establish programsto monitor non-utility generators to ensure they continue to meetFederal Energy Regulatory Commission requirements.
TVA Buys Chunk of Capacity on Columbia
A transportation agreement signed by Columbia Gulf and theTennessee Valley Authority (TVA) may mark the beginning of alasting relationship. The agreement covers firm transportation onColumbia for 240,000 MMBtu/d of gas that will fuel 1,500 MW ofpower generation at TVA’s Gallatin Power Plant in Sumner County,TN. But the plant represents a small piece of a larger conversionprocess which will turn another 20 generation units to gas usageover the next year.
Tower Loses Round in Self-Generation Battle
The Illinois Commerce Commission (ICC) decided last week itlacked authority to rule on whether Commonwealth Edison (ComEd)could be required to lease or sell its wiring inside Chicago’sSears Tower to the building’s owner. Tower Leasing is seekingcontrol of the building’s internal wiring so it can installgas-fired cogeneration to meet a portion of the building’selectricity needs.
California ISO Accused of Tampering With Prices
FERC needs to make the responsibilities and line of authority ofindependent system operators “crystal clear” to make sure they donot interfere with pricing and the commodity portion of the market,according to an Electric Clearinghouse executive who said thatright now the California ISO is overstepping the bounds.