Files

Duquesne Light Co. of Pittsburgh, a DQE subsidiary, filed withthe Pennsylvania Public Utility Commission (PUC) to transfer itsgeneration fleet to Baltimore-based Orion Power Holdings Inc., thewinning bidder in a previous generation auction. Orion will payDuquesne Light $1.705 billion for seven wholly owned fossil-firedgeneration stations, certain transmission facilities, and the rightand obligation to supply wholesale power to serve Duquesne’sprovider of last resort customers. As a result, Duquesne will endstranded cost collection in 2001 for most major customer rateclasses, reducing rates by more than 25%, assuming market pricesfor electricity remain at or below the commission-approved shoppingcredits.

Guardian Pipeline filed with the FERC for a certificate toconstruct, own and operate its proposed 149-mile pipeline. Thepartnership is made up of three midwestern energy companies-CMSEnergy of Dearborn, MI; WICOR of Milwaukee, WI; and Viking Gas, awholly owned subsidiary of Northern States Power Co. of St. Paul,MN.

WPS Energy Services, Inc., a subsidiary of WPS Resources Corp.,announced today that it has filed an application with the MichiganPublic Service Commission (MPSC) to build a 3 Bcf capacity naturalgas storage field near Port Huron, MI. The storage facility will belocated near major natural gas pipelines, including: Great LakesGas Transmission, MCN Energy Pipeline and Processing, CMS GasTransmission and Storage, and Vector Pipeline which is slated forOctober 2000 start-up. The facility is also located near thenatural gas trading hub of Dawn in Ontario, Canada.

Although getting 13 parties to agree on how to solve the naggingproblem of imbalances, a new Pacific Gas and Electric Co.settlement agreement on its transmission and storage operations isjust the first of a number of changes that are anticipated underCalifornia’s ongoing gas industry restructuring program. Even forthis step, state regulators still must react to the agreement andthen market participants must assess whether the provisions willresult in the market efficiencies and cost-savings that shippersare anticipating.

The Federal Energy Regulatory Commission (FERC) began thecertification process for the Coastal Corp.’s Gulfstream NaturalGas project, a pipeline from Mobile, AL, across the Gulf of Mexicoand the state of Florida. And in related news, Williams re-filedit’s application for the competing Buccaneer Gas Pipeline. Aprevious Williams filing was rejected without prejudice forinsufficient environmental information.

Williams’ Buccaneer Gas Pipeline was the first to file an underwater Florida-bound project with FERC on Sept. 30 (see NGI Oct. 4), but Coastal Corp.’s competing Gulfstream Natural Gas System moved to the lead last week, filing its project three days after Buccaneer’s filing was rejected on technical and environmental grounds related to new filing requirements. FERC told Buccaneer to come back with a complete filing.

Williams’ Buccaneer Gas Pipeline was the first to file anunderwater Florida-bound project with the FERC on Sept. 30 (see DailyGPI, Oct. 1), but Coastal Corp.’scompeting Gulfstream Natural Gas System moved to the lead today,filing its project three days after Buccaneer’s filing was rejected ontechnical grounds. The FERC told Buccaneer to come back with acomplete filing.

Costilla Energy Inc., a Texas-based producer with assets inSouth Texas and the Permian Basin, reported last week it has filedfor Chapter 11 with the U.S. Bankruptcy Court in Midland, TX. Thecompany said despite this setback, its oil and gas operations willcontinue without interruption. The company did not return phonecalls by press time.

Columbia Gas of Pennsylvania filed its restructuring plan withthe Pennsylvania Public Utilities Commission Monday in an effort toexpand its supplier choice program statewide. As part of theNatural Gas Choice and Competition Act passed by the PennsylvaniaGeneral Assembly June 17, each gas utility is required to submit arestructuring plan to the PUC by Nov. 1.