Eastern

All three major Gulf Coast/Northeast interstate pipes —Tennesseee, Texas Eastern (Tetco) and Transco — issued shipperwarnings Thursday about receipts into their systems laggingconsiderably behind market-area deliveries. Tennessee issued aBalancing Alert OFO, effective today until further notice, to 39shippers (applying to more than one contract in some cases). A penaltyof $15/Dth “plus the applicable regional daily spot price” toovertakes from delivery meters or underdeliveries at receipt pointsthat exceed 2% or 500 Dth, whichever is greater, of scheduledquantities. Tennessee also is reducing today its normal SupplyAggregation (SA) contract imbalance tolerance of 1,000 dekatherms to500 dekatherms across all supply area pools. The tolerance for marketarea pools remains at zero, the pipeline said. Tetco said allpreviously announced restrictions (see Daily GPI, Dec. 21) would remain in effect untilfurther notice and added two more that take effect today: all IT-1volumes, including backhauls, received or delivered in the Access Areawill not be scheduled; and no nominations for interruptible orsecondary service will be accepted at the Oakford, Leidy andLambertville points. Transco cut the 4% tolerance currently allowed atits pooling points to 1% or 1,000 Dth, whichever is greater, fornegative imbalances. Shippers with positively scheduled poolimbalances will continue to be held to the 4% tolerance level. Transcoadded that it may proactively decrease markets to bring them in linewith supplies at pooling points.

Citing forecasts of “an extended period of steady, cold weatherthroughout the pipeline system,” Texas Eastern said it is imposingseveral restrictions this morning to preserve linepack and systemreliability. Until further notice no forward-haul mainline IT-1volumes will be delivered to the market area; no due-shipperimbalances are available; TABS-1 shippers are required to be inbalance daily; and all non-interstate Operational BalancingAgreements upstream of the Berne (OH) Compressor Station have beensuspended. Affiliate Algonquin is restricting the taking of anydue-shipper imbalances. Both pipes said they will consider thepotential for secondary restrictions going into the holiday weekendas conditions warrant.

Trunkline Gas, Texas Eastern Products Pipeline Co. LP (TEPPCO)and Marathon Ashland Petroleum LLC have called on FERC to actquickly on an application that seeks to convert 720 miles ofTrunkline’s mainline gas transmission system to a liquid petroleumproducts pipeline.

In a refreshing change of pace, Duke Energy’s Texas EasternTransmission Corp. (TETCO) asked FERC last week for a system-widerate reduction — yes, reduction — of about $137 millionannually for its interstate pipeline customers.

In a refreshing change of pace, Duke Energy’s Texas EasternTransmission Corp. (TETCO) asked FERC yesterday for a system-widerate reduction — yes, reduction — of about $137 millionannually for its interstate pipeline customers.

FERC last week gave Tennessee Gas Pipeline an extension untilJune 1, 2001 to complete construction of its Eastern ExpressProject 2000 expansion.

Conectiv sold the southern regional division of ConectivServices, which is located in southern Delaware and easternMaryland, to the unit’s employees. Terms of the sale were notdisclosed. The southern division provided new construction,replacement, service and maintenance of heating, cooling, andplumbing services for residential and commercial customers. Themove continues Conectiv’s previously announced plan to exitbusinesses it no longer considers strategic, and seek a partner forits telecommunications business, and focus on its core mid-meritand power delivery segments. Earlier this year, Conectiv announcedthe sale of the northern and mechanical divisions of ConectivServices and the sale of its Conectiv Thermal joint ventures inCalifornia and Nevada. Conectiv is focused on two core energybusinesses: Conectiv Power Delivery, which provides energy serviceto more than one million customers in New Jersey, Delaware,Maryland, and Virginia; and Conectiv Energy, which includes powertrading and a growing portfolio of “mid-merit” power plants.

OGE Energy Corp. subsidiary Enogex Inc., announced plans toexpand its Harrah Gas Processing Plant in eastern Oklahoma County,doubling the plant’s capacity to 38 MMcf/d. The expansion at Harrahis expected to be complete and in service by January 2001.

Slightly cooler temperatures in many major eastern marketregions dropped cooling demand a few notches yesterday, but alleyes quickly turned to the northwestern Caribbean Sea whereTropical Depression 11 appeared poised for a weekend visit to theGulf of Mexico.