Customers

FERC disregarded the objections of Viosca Knoll Gathering andwaived guaranteed future revenue regulations to let a DestinPipeline expansion go forward last week. Destin plans to construct31 miles of pipeline from a platform at Viosca Knoll Block 900 to atie-in with a Destin lateral in Main Pass Block 279.

The FERC majority has approved a settlement that not only givescustomers on Texas Gas Transmission lower rates and refunds, butalso clears the way for NorAm Gas Transmission, a non-shipper andpipeline competitor, to have an evidentiary hearing on a number ofrate-related issues contained in the agreement. Commissioner LindaBreathitt dissented in part, saying the ruling set a dangerousprecedent for other rate settlement cases.

Centra Gas Manitoba, an LDC serving 240,000 customers, is on thehook for $27.5 million due to a price management program theManitoba Public Utilities Board said was run “.with inexperiencedtraders, and with inadequate supervision.”

Pacific Gas & Electric said less than 1,000 of the more than60,000 customers who lost natural gas service last week in SantaCruz County, CA, were still without service Monday. A massivelandslide Wednesday had ruptured two main transmission pipelinesserving the county, which is southwest of San Jose. More than 600PG&E workers and another 190 from Southern California Gasworked thoughout the weekend to restore service. Facilities withhot showers were set up in two towns for those without gas to heatwater. It was PG&E’s largest gas restoration project since the1989 Loma Prieta earthquake caused severe damage to thedistribution system throughout Northern and Central California, thecompany said.