TransCanada PipeLines subsidiary NOVA Gas Transmission (NGTL)filed its new pricing structure proposal with the Alberta Energyand Utilities Board (AEUB) yesterday. The gas transportation tollson TransCanada’s Alberta system are consistent with the memorandumof understanding (MOU) reached recently with the CanadianAssociation of Petroleum Producers. Announced March 24, the MOUdetails a new distance- and quantity-based pricing structure toreplace the current postage-stamp pricing regime for tolls on theAlberta system. The application also reflects input gathered duringan extensive stakeholder consultation process that began in late1996. The filing replaces an application NGTL put forth to the AEUBin April 1998.
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Equitable Files for Cut in Customers’ Bills
Equitable Gas Co. filed a gas cost adjustment with thePennsylvania Public Utility Commission (PUC) Thursday which, ifapproved, will result in a 9% reduction in customers’ monthlybills. The rate cuts would be effective Oct. 1. The PUC did notdisclose when it would review the filing.
Industry Briefs
Conoco Inc. filed a registration statement with the Securitiesand Exchange Commission (SEC) outlining a split-off plan fromDuPont that will establish Conoco as a fully independent company.The proposed split-off would be achieved through an exchange offerin which DuPont stockholders would be given an opportunity toexchange DuPont common stock for shares of Conoco Class B commonstock currently held by DuPont. The split-off is expected to becompleted in the third quarter. Last autumn, DuPont sold 30% ofConoco last October in the largest initial public offering in U.S.history. The IPO raised $4.4 billion and left DuPont with a 70%controlling interest in Houston-based producer.
Tennessee Files Tiny Eastern Express Project
Tennessee Gas Pipeline filed a significantly scaled-down versionof its Eastern Express Project 2000 last week, reporting thateastern markets have been slow to develop and many New Englandpower generators believe it would be premature to sign long-termcontracts for firm gas transportation. The pipeline’s applicationwith FERC calls for the addition of only 168 MMcf/d of capacityalong the northernmost part of its system at a connection with theJoint Facilities of the PNGTS and Maritimes & Northeastpipelines.
USGen Supports Gulfstream Project
U.S. Generating Co. filed last week at the FERC touting its Caloosa Generating Project as more economically and environmentally friendly than Florida Power & Light’s (FPL) Fort Myers project, at the same time lending support to the recently announced Gulfstream Natural Gas System.
Kimball Trading Files for Bankruptcy
Houston-based Kimball Trading and Kimball Trading Canada ofCalgary, two of the Kimball Companies, last week filed for Chapter11 bankruptcy protection in Houston. The move caused marketrepercussions last Thursday, the day after the filing, as Kimballhalted gas flows to customers. The bankruptcy filings do notinvolve the related Kimball Resources or the other KimballCompanies.
Destin Seeking Waiver at FERC as Costs Nearly Double
Destin Pipeline Co. has filed at FERC to have cost limitationson its “CNG Lateral” waived in light of delays that pushed theproject’s cost to $35.1 million, well above $19.6 million allowedfor in the Commission’s certification of the project last year(Docket No. CP98-238).
Nicor to Test Performance Against a Benchmark
Nicor Gas has filed a performance-based rate proposal with theIllinois Commerce Commission that would allow the company and itscustomers to save money if Nicor’s commodity, transportation andstorage costs are lower than a fluctuating benchmark. The benchmarkwill be based on a bushel of published gas price indexes, plusaverage transportation costs over the prior year and actual storagecosts. The PBR is expected to be in place starting next January.
Destin Seeking Cost Waiver at FERC
Destin Pipeline Co. filed at FERC last week to have costlimitations on its “CNG Lateral” waived in light of delays thatpushed the project’s cost to $35.1 million, well above $19.6million allowed for in the Commission’s certification of theproject last year (Docket No. CP98-238).
CME Plans New Weather-Based Indexes
The Chicago Mercantile Exchange announced Thursday it has filedfor regulatory approval to offer exchange-traded, heating degreeday (HDD) and cooling degree day (CDD) futures and optionscontracts. The CME said these indexes will help companies manageweather-related financial risks. A start date will be set afterCommodity Futures Trading Commission (CFTC) approval.