Critics

In response to suspension of the expansion of its natural gas customer choice program by the Illinois Commerce Commission two weeks ago, Nicor Energy released a statement expressing its concern over the situation. The supplier also responded to negative claims made by the Citizens Utility Board (CUB), a non-profit utility watchdog group formed in Illinois in 1983.

In response to suspension of the expansion of its natural gascustomer choice program by the Illinois Commerce Commission lastweek, Nicor Energy yesterday released a statement expressing itsconcern over the situation. The supplier also responded to negativeclaims made by the Citizens Utility Board (CUB), a non-profitutility watchdog group formed in Illinois in 1983.

With the ink barely dry on the final FERC order, state Rep.Frank LaGrotta of Pennsylvania yesterday sought review of theCommission’s decision awarding a certificate to the hotly contestedIndependence Pipeline that would run through his state. Thelawmaker said the Commission should have denied the Midwest-to-EastCoast pipeline project a certificate because the precedentagreements it filed as a show of market support contained “outclauses” for shippers.

New Jersey regulators were asked last week to re-evaluate thepolicy of gas utilities regarding interruptible contracts, withsome critics calling for a state-wide ban on IT service to providesome relief from the spikes in heating-oil prices witnessed thiswinter.

It may be time for all the critics of the proposed Independence,MarketLink and Millennium expansions to pipe down. Gasdeliverability to the Northeast clearly is not as rosy as manyindustry experts once thought as illustrated by the record high gasprices last week during a period of extreme cold.

Critics of the controversial multi-state gas pipeline project— Independence Pipeline and the associated SupplyLink andMarketLink expansions — insist FERC treated the projects with kidgloves in its interim order last month, while the project sponsorsargue the Commission held their projects to unprecedented higherstandards that may be impossible to meet.

It may be time for all the critics of the proposed Independence,MarketLink and Millennium expansions to pipe down. Transportationto the Northeast market from the Gulf of Mexico rocketed to$16.50/MMBtu yesterday. Gas prices at the New York City Gate onTranscontinental Gas Pipe Line jumped as high as $19/MMBtu whileHenry Hub spot prices languished in the $2.50s. Deliverabilityclearly is not as rosy as many industry experts once thought.