Corporation

After more than a year of wrangling between Oklahoma Natural GasCo. and the Oklahoma Corporation Commission (OCC) an agreement onwhich of the LDC’s transmission and distribution assets will beregulated and which will be unregulated and open to competitivebidding has been hammered out.

The Oklahoma Corporation Commission (OCC) and Oklahoma NaturalGas Co. (ONG) hammered out which of the LDC’s transmission anddistribution assets will be regulated and which will be unregulatedand open to competitive bidding. Once sufficient competition existsin the marketplace, competitors will bid to provide service usingthe unbundled assets. Unbundled assets are to be removed from ONG’srate base.

Duke Energy in conjunction with affiliates of Westcoast EnergyInc., Mobil Corporation and NS Power Holdings Inc. recentlycompleted the project financing for the U.S. and Canadian portionsof the Maritimes & Northeast Pipeline project.

The lengthy and at times acrimonious fight between Oneok and theOklahoma Corporation Commission (OCC) over upstream unbundlingappears to be over. On Thursday, the OCC voted 2 to 0, with onecommissioner absent, to unbundle the upstream gas gathering andstorage services of Oklahoma Natural Gas (ONG) and Kansas GasService, divisions of Oneok Inc.

Wrangling over two Oklahoma Natural Gas Co. (ONG) rate cases andunbundling of the ONG system continues in Oklahoma. OklahomaCorporation Commission Chairman Ed Apple last week voted against astipulated agreement between the commission and ONG. The agreement,which was killed in a 2-to-1 vote, had previously been appealed byOklahoma Attorney General Drew Edmondson. The AG maintained he wasdenied due process in negotiations between the commission and ONG.Edmondson also alleged ex parte communications took place betweenONG and Commissioner Denise Bode.

Wrangling over two Oklahoma Natural Gas Co. (ONG) rate cases andunbundling of the ONG system continues in Oklahoma. OklahomaCorporation Commission Chairman Ed Apple last week voted against astipulated agreement between the commission and ONG. The agreement,which was killed in a 2-to-1 vote, had previously been appealed byOklahoma Attorney General Drew Edmondson. The AG maintained he wasdenied due process in negotiations between the commission and ONG.Edmondson also alleged ex parte communications took place betweenONG and Commissioner Denise Bode.

Oklahoma Attorney General Drew Edmondson is appealing the Oklahoma Corporation Commission’s (OCC) preliminary approval of a stipulation agreement between the OCC and Oneok (parent of Oklahoma Natural Gas). The agreement consolidates two ongoing rate cases and provides for an interim rate reduction for Oklahoma customers of ONG and Kansas Gas Service of $5 million per year beginning in September. The attorney general maintains a larger rate reduction may be in order.

Oklahoma Attorney General Drew Edmondson is appealing theOklahoma Corporation Commission’s (OCC) preliminary approval of astipulation agreement between the OCC and Oneok (parent of OklahomaNatural Gas) that consolidates two ongoing rate cases and providesfor an interim rate reduction for Oklahoma customers of ONG andKansas Gas Service of $5 million per year beginning in September.The AG maintains a larger rate reduction may be in order.

Virginia’s State Corporation Commission (SCC) said it plans to use the full 180 days allowed by Virginia law before ruling on Dominion Resources’ merger with CNG. The announcement was made just two weeks after CNG cited fewer potential regulatory problems as a main reason for selecting the Dominion bid over a hostile offer from Columbia Energy Group (See NGI, May 17). If the SCC takes the full 180 days, a decision would not be reached until Nov. 17.