Decontracting

In an effort to deal with the serious decontracting problem onits pipeline system caused by the addition of Northern Border’sChicago expansion and the Alliance Pipeline project, TransCanadasaid last week it is strongly considering filing an applicationwith the National Energy Board this month to raise the floor pricefor interruptible and short-term firm transportation service,something the pipeline’s shippers almost certainly will oppose.

FERC has given the go-ahead to a major settlement that attemptsto resolve the looming decontracting problem on Texas EasternTransmission’s (Tetco) system while offering a significant ratereduction to its customers.

Spurred on by LDC unbundling and subsequent decontracting,interstate gas pipelines are bracing for a brave new world thatcould portend significant changes in the way capacity is priced andin the types and range of services that will be offered tocustomers in the years ahead, pipeline executives said last week.