Final

In an “emergency motion,” the New York Public Service Commissionhas asked FERC not to award the proposed Millennium Pipeline finalenvironmental clearance until an alternate route is found for theproject in the state.

Punctuated by a gut-wrenching final 45 minutes in which the spotcontract plummeted, spiked and then fell again, natural gas futuresfinished on a strong note yesterday in a classic short-coveringrally.

The Federal Energy Regulatory Commission said that at its nextmeeting Jan. 12 it will consider a final rule on the proposedchanges to its regulations governing short-term natural gastransportation services and interruptible transportation (DocketsRM98-10 and RM98-12).

Sempra Energy of San Diego, CA, will be the only game in town for gas distribution in Nova Scotia for at least 25 years now that it has the provincial government’s permission to build and operate the largest new North American gas distribution system of the last 30 years.

Sempra Energy of San Diego, CA, will be the only game in townfor gas distribution in Nova Scotia for at least 25 now that it hasthe provincial government’s permission to build and operate thelargest new North American gas distribution system of the last 30years.

ScottishPower and PacifiCorp received Nuclear RegulatoryCommission (NRC) approval of their merger. It is the final federalapproval needed to complete the transaction. NRC approval isrequired because PacifiCorp owns a 2.5 percent share in the TrojanNuclear Plant in Oregon. The plant has not operated for severalyears, and is in the process of being decommissioned. “With allfederal, and four of the six state approvals in place, we are wellon track to completing the merger by the end of the year,” saidPacifiCorp CEO-designate Alan Richardson.

Southern Union Co. received final approval from the FederalEnergy Regulatory Commission for its merger with PennsylvaniaEnterprises Inc. The FERC approved transfer of control of powermarketing licenses held by Pacific Enterprises. The merger,announced June7, is expected to close Thursday.

El Paso Energy Corp. and Sonat Inc. completed their $6 billionmerger yesterday. As NGI reported earlier, the two companies jumpedthe final hurdle when El Paso agreed to the FTC’s terms to divestits 100% ownership in East Tennessee Natural Gas Co., Sonat’s 100%ownership of Sea Robin Pipeline Co., and Sonat’s one-third interestin Destin Pipeline Co., L.L.C. following the merger (see Daily GPI,Oct. 25). The transaction creates a transmission system comprisingover 40,000 miles, which El Paso said is the largest system inNorth America both in terms of throughput and miles of pipeline.The new El Paso’s pipeline systems will transport 12.4 Bcf/d-fullyone quarter of the natural gas volumes transported in the UnitedStates. The combined company will be headquartered in Houston.Sonat’s headquarters will remain in Birmingham, AL, and El PasoNatural Gas Co. will remain in El Paso, TX. William Wise,previously CEO of El Paso Energy, will retain his position in thenew company. Ronald Kuehn, who has been CEO of Sonat, is now thechairman of the board for the combined company until Dec. 31, 2000.

The Federal Energy Regulatory Commission voted out a final ruleyesterday that will give property owners affected by proposedpipeline construction greater participation in the certificateprocess.