Controversial

A House Commerce subcommittee hearing yesterday revealed thatlawmakers aren’t much closer to agreement on the tough,controversial issues associated with restructuring of the powerindustry than they were a year ago.

Controversial arrangements between pipelines and marketers -similar to the one awarding Dynegy Marketing and Trade sole controlof 1.3 Bcf/d of the remaining unsubscribed capacity on El PasoNatural Gas – could proliferate if FERC should uncap prices in theshort-term capacity market without first ensuring that adequatesafeguards are in place for pipeline customers, Californiaregulators warned.

The controversial Northeast-bound Independence Pipeline andMillennium Pipeline have won draft environmental acceptance at theFederal Energy Regulatory Commission, giving both the first bit ofencouraging news since the project applications were first filed.But the projects may not turn out as originally designed.

The controversial Northeast-bound Independence Pipeline andMillennium Pipeline have won draft environmental acceptance at theFederal Energy Regulatory Commission. This was good news for bothpipelines, which have been beset by unprecedented landowneropposition and questions about the “need” for the projects.

FERC earlier this week gave Williams Gas Pipelines Central onemore chance to settle the lingering, controversial cost-recoveryissues arising from the reformation of three of its gas supplycontracts for production in Colorado.

FERC last week gave Williams Gas Pipelines Central Inc. one morechance to settle the lingering, controversial cost-recovery issuesarising from the reformation of three of its contracts for gassupply in Colorado.

FERC last week approved an amended certificate for SouthernNatural Gas (Sonat) to build a controversial mainline extensionthat’s intended to provide customers with an alternative to theexisting pipeline now serving northern Alabama. The fate of theproject, however, still hangs in the balance since the InteriorDepartment’s Fish and Wildlife Service (FWS) hasn’t yet issuedSonat a permit to build through a protected wildlife refuge.

FERC yesterday approved an amended certificate for SouthernNatural Gas (Sonat) to build a controversial mainline extension tooffer competing transportation services to customers in northernAlabama and Georgia. The fate of the project, however, still hangsin the balance given that Interior Department’s Fish and WildlifeService (FWS) hasn’t issued Sonat a permit yet to build through aprotected public refuge.

Natural Gas Clearinghouse’s (NGC) controversial transportationcontracts for 1.3 Bcf/d with El Paso Natural Gas came under fireagain last week as producers and marketers hammered away at thealleged anticompetitive nature of the firm agreements.