Costs

Petro-Canada Plans Bypass to Skirt Tolls

Petro-Canada has become the latest natural gas producer to resort to a pipeline bypass to cut costs of transportation on the TransCanada-Nova system by ducking around its former monopoly franchise in Alberta.

August 10, 2001

Select Energy, HEFA to Lower Non-Profits’ Gas Costs

The Massachusetts Health and Educational Facilities Authority (HEFA) PowerOptions energy program reported on Wednesday that it has entered into a second major energy contract with Select Energy Inc. of Berlin, CT. The two-year agreement to supply natural gas to HEFA members extends through Oct. 1, 2003 and is expected to provide Select Energy, the retail energy marketing and services subsidiary of Northeast Utilities, with revenues of $25 million over the length of the contract.

August 9, 2001

Barry Costs 5 to 6 Bcf in Production

As much as five to six Bcf of gas production was lost due to shut-ins as Tropical Storm Barry lingered in the Gulf of Mexico from Friday through Sunday, before moving ashore and dissipating into heavy rain Monday.

August 7, 2001

EPRI: U.S. Power Outage Costs Top $119 Billion Annually

Power outages and other power quality disturbances are costing the U.S. economy more than $119 billion annually, according to a recent study sponsored by the Electric Power Research Institute’s (EPRI) Consortium for Electric Infrastructure to Support a Digital Society (CEIDS).

July 17, 2001

Enron’s Energy Services Poised to Deliver

With or without deregulation, the impact of rising energy costswill increase the demand for Enron’s growing product base,especially in its services area, offering even more leverage forNorth America’s largest wholesale marketer. Lou Pai, CEO of EnronEnergy Services LLC, provided an overview of his division at theannual investor’s conference last Thursday in Houston, calling theopportunities for growth are tremendous.

January 29, 2001

TransCanada Cuts Capacity, Scraps Compressors

TransCanada PipeLines plans to remove 12 older compressors fromservice in an effort to lower maintenance costs and reduce theamount of excess pipeline capacity on its system following thestart-up of the 1.325 Bcf/d Alliance Pipeline on Dec. 1.

November 27, 2000

TransCanada Cuts Capacity, Scraps 12 Compressors

TransCanada PipeLines plans to remove 12 older compressors fromservice in an effort to lower maintenance costs and reduce theamount of excess pipeline capacity on its system following thestart-up of the 1.325 Bcf/d Alliance Pipeline on Dec. 1.

November 27, 2000

Industry Briefs

Sierra Pacific Resources announced that higher fuel and powercosts are expected to cause a dip in corporate earnings. Thecompany blamed it’s two Nevada utility subsidiaries, Nevada Power,and Sierra Pacific Power for the estimated $70-80 million in overbudget fuel expenses. “Similar to other electric utilities in theWest, we have confronted an unprecedented and extremely volatileenergy market over the last several months,” said Mark Ruelle,senior vice president for Sierra Pacific Resources. “As a result,we’ve been forced to pay significantly more for fuel and purchasedpower than we had budgeted at the same time that above-normaltemperatures increased the demand for electricity, particularly insouthern Nevada. “We expect fuel and purchased power expenses tohave a negative impact on second quarter earnings and an ongoingnegative earnings impact for the remainder of the year,” Ruelleadded.

July 17, 2000

Puget’s Purchase Eliminates PURPA Contract

In an ongoing effort to reduce power costs from existing PublicUtilities Regulatory Policy Act (PURPA) contracts, Puget SoundEnergy announced yesterday an agreement to buy a 160 MW gas-firedcogeneration plant in Bellingham, WA, from Encogen for $164million. Puget Sound said buying the facility eliminated its secondlargest PURPA contract, a deal which required it to pay Encogenfixed and escalating fees through mid-2008 for the plant’s output.

October 1, 1999

Industry Briefs

Start-up costs and rapid Georgia customer acquisitions by itsSouthStar Energy Services partnership with Dynegy and AGLResources, cost Piedmont Natural Gas about $0.06/share during itsthird quarter, which ended July 31, the company reported this week.It experienced a net loss of $8.2 million (-$0.26/share) during thequarter, compared with a net loss of $6.3 million (1$0.20/share)during the same period a year earlier. As of Oct. 1, SouthStar willbe serving more than 450,000 new gas customers in Georgia. Theearnings per share impact of this venture for the first nine monthsof the year was -$0.10/share. Piedmont also noted that weather inits territory was 57% of the thirty-year normal heating degreedays. The company’s margin (revenues less cost of gas) was $44.4million compared with $45.5 million for the comparable year-agoperiod. For the nine-month period, basic earnings per share were$2.17, compared with $2.32 for the year-ago period, and margin was$279.8 million compared with $282.6 million for the prior yearperiod.

August 31, 1999