Eastern

In what it dubs as a “synthesis” of proven operating steps in both eastern and western markets, California’s non-profit electricity transmission grid operator, Cal-ISO, last Wednesday released its draft 2002 Market Design Plan as a starting point that it plans to refine later this month with input from market participants. The plan’s overall objective for what eventually must be a federally approved blueprint is to shrink the grid operator’s real-time market and provide more future wholesale price stability, according to Cal-ISO’s chief architect for the plan.

Kinder Morgan Energy Partners LP (KMP) added the massive eastern Texas pipeline system of Tejas Gas LLC to its shopping cart this Christmas. The company said it’s buying Tejas, a wholly owned subsidiary of InterGen (North America) Inc. — which is a joint venture of Royal Dutch Shell and Bechtel — for $750 million in cash, or “a little less than eight times the [annual] EBITDA of the system,” according to CEO Richard Kinder.

Kinder Morgan Energy Partners LP (KMP) added the massive eastern Texas pipeline system of Tejas Gas LLC to its shopping cart this Christmas. The company said it’s buying Tejas, a wholly owned subsidiary of InterGen (North America) Inc. — which is a joint venture of Royal Dutch Shell and Bechtel — for $750 million in cash, or “a little less than eight times the [annual] EBITDA of the system,” according to CEO Richard Kinder.

Both Duke Energy-operated pipelines, Texas Eastern and Algonquin, issued Critical System Warnings Sunday saying that based on anticipated system operations and weather conditions, all customers were required to immediately “eliminate excess receipts and conform scheduled receipts to actual deliveries.” The warnings will remain in effect until further notice. Texas Eatern noted that with unseasonably mild weather in the market area and shippers filling contract storage inventories in anticipation of the heating season, its storage capacity is now about 98% full, leaving little system flexibility. If mitigating action isn’t taken, an OFO with non-compliance penalties of $25/Dth may become necessary, the pipeline said. Without specifically mentioning a potential OFO, Algonquin said it may adjust customer nominations and/or revise scheduled quantities to halt further accumulation of imbalances. “In addition, AGT may take any actions within its operational capabilities to reduce excess receipts,” it added. No due-pipe imbalance makeup is being accepted until further notice.

Coming to completion right on schedule, Houston-based Texas Eastern Products Pipeline Co. LLC, general partner of TEPPCO Partners LP, reported that it has finalized its acquisition of the Jonah Gas Gathering Co. from Green River Pipeline LLC and McMurry Oil Co., both wholly owned subsidiaries of Alberta Energy Co. Ltd. (AEC). TEPPCO said the estimated $360 million deal marks its entry into the natural gas gathering business.

Coming to completion right on schedule, Houston-based Texas Eastern Products Pipeline Co. LLC, general partner of TEPPCO Partners LP, reported that it has finalized its acquisition of the Jonah Gas Gathering Co. from Green River Pipeline LLC and McMurry Oil Co., both wholly owned subsidiaries of Alberta Energy Co. Ltd. (AEC). TEPPCO said the estimated $360 million deal marks its entry into the natural gas gathering business.

The Federal Energy Regulatory Commission approved two large eastern utility mergers last Wednesday, including the $1.4 billion merger of combination utility holding company Energy East and RGS Energy Group, which owns Rochester Gas & Electric. The Commission also gave the final green light to the merger of DC-based Pepco with Conectiv, which will create the largest electricity delivery company in the Mid-Atlantic region, serving more than 1.8 million customers in Delaware, the District of Columbia, Maryland, New Jersey and Virginia.

The late-September incremental market was geographically mixed Wednesday. Eastern points tended to range from flat to down about a dime, while except for similarly softer Permian/Waha quotes, the West was flat to nearly a dime higher.

The Federal Energy Regulatory Commission approved two large eastern utility mergers Wednesday, including the $1.4 billion merger of combination utility holding company Energy East and RGS Energy Group, which owns Rochester Gas & Electric. The Commission also gave the final green light to the merger of DC-based Pepco with Conectiv, which will create the largest electricity delivery company in the Mid-Atlantic region, serving more than 1.8 million customers in Delaware, the District of Columbia, Maryland, New Jersey and Virginia.