Cutting

Following through on a cost-cutting initiative begun in 1999 under another CEO, Calgary-based TransCanada PipeLines Ltd. on Friday said it has reached an agreement to sell some of its natural gas marketing and trading operations to BP Gas & Power. Included in the sale is CanStates Gas Marketing, a contract to manage gas supply assets for SEMCO Energy Gas Co., and the marketing and trading operations in its Omaha, NE office. Financial details were not disclosed.

Pacific Gas & Electric kept a Stage 3 high-inventory OFO declared for Saturday in place through Sunday, cutting the imbalance tolerance from 1% to zero. No OFO was in effect Monday or today.

Following a warning last Thursday by Pacific Gas and ElectricCo. that its gas suppliers were cutting off supplies because ofPG&E’s financial trouble, Energy Secretary Bill Richardsonstepped in and ordered the suppliers to continue providing gas tothe utility through this Wednesday.

Following a warning last Thursday by Pacific Gas and ElectricCo. that its gas suppliers were cutting off supplies because theyweren’t getting paid for their gas, Energy Secretary BillRichardson stepped in and ordered the suppliers to continueproviding gas to PG&E through this Wednesday.

Now that the Federal Trade Commission (FTC) has finally blessedthe merger of BP Amoco and ARCO, what’s next? “A lot ofcost-cutting very quickly,” said Edward Jones analyst Kate Warne,who admitted to being stumped for anything else to say about thedeal that was a year in the making (see NGI, April 5, 1999).

Utilipro Inc., an 80% AGL Resources-owned billing and customerservice provider, announced last week it is cutting staff andreorganizing because energy deregulation is taking hold too slowly.

Utilipro Inc., an 80% AGL Resources-owned customer-caresolutions provider, announced yesterday it is cutting staff andreorganizing because energy deregulation is taking hold too slowly.

El Paso found unexpected damage in its inspection of the WhiteRock No. 2 turbine. The unit remained down through Friday, cuttingSan Juan Basin capacity by 200 MMcf/d. The pipeline expected tocomplete repairs by late Friday afternoon, but said because itcould not raise San Juan capacity until the unit could be tested,the constraint would remain in effect for Cycles 1 and 2 ofSaturday’s gas day.

Questar is cutting about 25,000 Dth/d while repairing mechanicalproblems that began Tuesday afternoon on its No. 3 compressor atFidlar Station.