ferc

Staffs of FERC and the California State Lands Commission (CSLC) have jointly given final environmental clearance to Kern River Gas Transmission’s $1.2 billion 2003 expansion, which will more than double the existing transportation capacity of the Wyoming-to-California natural gas pipeline.

The Federal Energy Regulatory Commission last week issued a favorable draft environmental review to Islander East Pipeline Co. LLC to build a 50-mile pipeline that will transport natural gas from Connecticut to the Long Island, NY, market.

As a further fallout from Enron Corp.’s financial collapse, three Democratic senators from the West Coast introduced legislation in Congress last week to step up the regulatory oversight of the energy markets to ensure full disclosure of all energy transactions. They plan to offer the measure as an amendment to the comprehensive energy bill, which the Senate is expected to take up after the Presidents Day recess.

As a further fallout from Enron Corp.’s financial collapse, three Democratic senators from the West Coast plan to introduce legislation in Congress today to step up the regulatory oversight of the energy markets to ensure full disclosure of all energy transactions.

Tennessee Gas Pipeline Co., a subsidiary of El Paso Corp., said Tuesday that it has accepted the Federal Energy Regulatory Commission’s (FERC) certificate authorizing construction of the Dracut Expansion project. The $35 million project will replace approximately 12 miles of existing 16-inch natural gas pipeline with a 24-inch line from Dracut to Burlington, MA, primarily using existing rights-of-way. The project will increase takeaway capacity from the Dracut interconnect by 200,000 Dth/d. Once the project is in service, the total takeaway capacity from Dracut will be more than 600,000 Dth/d. Tennessee said it expects the Dracut Expansion to be available for commercial service in the fall of this year. “The Dracut Expansion represents the next logical step in expansions from Dracut to serve the Northeast energy corridor,” said Stephen C. Beasley, Tennessee president. “Tennessee initiated the growth by completing the Eastern Express 2000 project in January 2000 and placed the Londonderry pipeline in service in September 2001. Tennessee is pleased to provide additional, reliable service by substantially increasing our capacity from Dracut with this expansion. The use of existing corridors allows Tennessee to minimize the environmental impact while delivering an economic project.”

A group representing 32 industrial customers in the Pacific Northwest has asked FERC to conduct a more thorough analysis of Northwest Natural Gas Co.’s planned acquisition of Enron affiliate Portland General Electric (PGE). The group charges that the deal could reduce competition in the region’s natural gas transportation and power markets. Northwest Natural and Enron agreed to the $1.8 billion cash and stock transaction in October two months before Enron declared bankruptcy (see Power Market Today, Oct. 9).

SCANA Corp. subsidiary SCG Pipeline Inc. filed an application with FERC to build an 18-mile gas pipeline in Georgia and South Carolina that would connect Southern LNG’s Elba Island liquefied natural gas import terminal near Savannah, GA, to a proposed power plant that would be built by SCANA subsidiary South Carolina Electric & Gas.

FERC last week issued a final certificate to Southern Natural Gas to expand its pipeline system to serve new power generation in Alabama and gave Tennessee Gas Pipeline the green light to increase firm takeaway capacity at connections with Maritimes & Northeast Pipeline and Portland Natural Gas Transmission in Massachusetts in order to increase the supply of Canadian natural gas to New England power plants.

FERC has issued final certificates to Southern Natural Gas to serve new power generation in Alabama and to Tennessee Gas Pipeline to increase firm takeaway capacity at connections with Maritimes & Northeast Pipeline and Portland Natural Gas Transmission in Massachusetts in order to increase the supply of Canadian natural gas to New England power plants.