Three of the four leading natural gas trade associations onFriday were said to be either definitely on board or “favorablyinclined” to jointly ask FERC for a second extension of thedeadline for industry comments on the major notice of proposedrulemaking (NOPR) and notice of inquiry (NOI) issued in July[RM98-10, RM98-12]. A source indicated there was a “50-50 chance”the lone association holdout would sign on too. The joint request,which reportedly is being spear-headed by the Interstate NaturalGas Association of America (INGAA), would seek a six-monthextension of the current Jan. 22nd deadline, and could be filed atthe Commission as early as this week. A possible reason for themove is that one of the groups is trying to buy time to broker acompromise with the other three associations on a voluntary auctionproposal, the source said. This would make pipeline participationin capacity auctioning optional, as opposed to the mandatory routethat FERC seems to favor.
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Cash Prices Continue Downward Journey
Cash prices across the board Friday displayed softness for thesecond day in a row, reflecting a moderating weather forecast forthe weekend and further into this week. Despite a small late bounceback in some markets, prices in most areas finished the dayaveraging 1 to 10 cents less than Thursday’s levels.
Cash Markets Spike Upward Amidst Active Buying
Contrary to most expectations, cash prices started-off the newweek with an upward spike across the board, logging gains of morethan a dime – in most areas – from weekend levels. Most sourcesattributed the rise to active buying as many market players weretaking advantage of below index pricing ahead of anticipated coolertemperatures later in the week. Cash prices at some deliverypoints, such as Northern Demarc and Ventura in the Midcontinent andthe PG&E citygate in California, registered gains upwards ofmore than 20 cents.
Maritimes Gets Environmental OK in Maine
Maritimes & Northeast Pipeline received approval from theMaine Board of Environmental Protection (BEP) to construct Phase IIof its project. Phase II includes about 200 miles of 24-inch and30-inch diameter mainline pipeline traversing southern, central andeastern Maine from Westbrook to Baileyville, ME, as well as about120 miles of proposed laterals and spurs to serve Maine industrialsand electric generators.
Defections, Prompt GISB Drive for Members
One of the Gas Industry Standard Board’s (GISB) goals in thecoming year will be to drum up participation in the standardsorganization among local distribution companies, while 33 of GISB’s157 members are LDCs – making the industry segment the third mostheavily represented, behind pipelines and service providers – LDCinput into standards development could be greater, conceded GISBExecutive Director Rae McQuade.
DuPont to Spin Off Conoco by Year-End
DuPont’s board of directors approved the previously announcedinitial public offering (IPO) of Conoco common stock before the endof 1998. Following completion of the IPO, DuPont intends to offerits remaining Conoco shares to DuPont shareholders in exchange forDuPont shares in a tax-free split-off expected to be completedwithin 12 months.
CalEnergy-MidAmerican Union Marching Ahead
CalEnergy Co. and MidAmerican Energy Holdings Co. filed anapplication for review of proposal for reorganization with the IowaUtilities Board (IUB) in conjunction with their proposed merger.The merger agreement is also subject to approval by theshareholders of both companies, for which special meetings will becalled later this year. Completion of the merger is expected tooccur by the end of the first quarter of 1999.
New Jersey Natural Gets Nod to Fully Unbundle System
The New Jersey Board of Public Utilities (BPU) last weekapproved a comprehensive agreement with the regulated arm of NewJersey Resources (NJR), New Jersey Natural Gas (NJNG), that wouldput it on a fast-track to provide supplier choice to itsresidential customers by Jan. 1.
New Jersey Resources Gets Nod to Fully Unbundle System
The New Jersey Board of Public Utilities (BPU) earlier this weekapproved a comprehensive agreement with New Jersey Resources (NJR),parent of New Jersey Natural Gas (NJNG), that would put it on afast-track to provide supplier choice to its residential customersby Jan. 1.
Personnel Changes
The Board of Directors of KeySpan Energy appointed four newofficers. Frederick M. Lowther, 54, of Dickstein Shapiro Morin& Oshinsky has been named general counsel. Steven L. Zelkowitz,49, has been named senior vice president and deputy generalcounsel. Michael J. Taunton, 42, has been named vice president ofinvestor relations. Lawrence S. Dryer, 39, has been named vicepresident of internal audit.
