First

Believing in the saying that “if at first you don’t succeed, tryagain,” El Paso began a new open season Friday to solicit interestin firm service agreements to move gas on an expansion of theBondad Line in San Juan Basin. A previous attempt at a Bondadexpansion ultimately broke down after FERC rejected some of thetariff provisions last year, leading the primary expansion shipperto withdraw from the project and FERC to vacate its projectcertification (see NGI, Sept. 7, 1998; Oct. 19, 1998; Dec. 14,1998; and Jan. 18, 1999).

Legislation has been introduced in the Virginia General Assemblythat would establish a framework for gas restructuring in thestate. Columbia Gas of Virginia, the first LDC in the state toimplement a gas supply choice program, is a main proponent of thebill, SB1105, which is being sponsored by State Sen. Charles Colgan(D-Manassas). A companion bill is being sponsored by Del. EricCantor (R-Henrico) in the House.

TransColorado Gas Transmission started pressuring up it Phase 2extension into western Colorado last week and expects to begintransportation services from the northern Rockies to the San JuanBasin some time next month, pending FERC approval of its ratedesign.

The Midwest snowstorm that gave such a lift to the first dailyprices of 1999 was being repeated to a lesser degree over theweekend and Monday, but this time there were no gains of 20 centsor more as a result. Instead, most of the cash market was flat todown as much as a dime Monday. Still-massive storage inventories,along with forecasts of warming weather in the North and a fallingscreen, were cited as reasons for the softness. Several sources described trading action as subdued.

Miller Petroleum Inc. announced Monday that it finished thetransportation system for what it calls the first commercialcoalbed methane project in Kentucky. The Huntsville,Tennessee-based company completed and started service on a 4.5mile, six-inch pipeline extension that draws 200-220 Mcf/d fromfour coalbed methane wells located in southeastern Kentucky. Thegas, which the company said rates 980 Btu/Mcf, will be injectedinto the Columbia pipeline system and sold by a third party. Fortymore wells are scheduled to be drilled on this site in 1999. Thecompany estimates the finding cost for the project to average$.35/Mcf.

Atlanta Gas Light Co. (AGL) will be the first to say that warmweather and fixed prices can cause trouble. In a situation that hascaught the eye of Georgia’s Public Service Commission (PSC), AGL’snew unregulated billing has enraged hundreds of customers who,because of warm weather, have not used much gas, but still receivedwinter-like gas bills. The public outcry caused the PSC to schedulea vote on Jan. 5 to determine whether a hearing should be held toexamine re-regulating the state’s gas industry. If the commissiondecides a hearing is necessary, it will be held Jan. 26 with adecision to come shortly thereafter.

Atlanta Gas Light Co. (AGL) will be the first to say that warmweather and fixed prices can cause trouble. In a situation that hascaught the eye of Georgia’s Public Service Commission (PSC), AGL’snew unregulated rates have enraged hundreds of customers who,because of warm weather, have not used much gas, but still receivedwinter-like gas bills. The public outcry caused the PSC to schedulea vote on Jan. 5 to determine whether a hearing should be held toexamine re-regulating the state’s gas industry. If the commissiondecides a hearing is necessary, it will be held Jan. 26 with adecision to come shortly thereafter.

As part of a broad-based statewide investigation the first halfof 1999, California will explore possibilities for opening upelectricity distribution to competition as an extension of thestate’s ongoing energy industry restructuring. Potential impact onthe natural gas industry will be part of the investigation orderedearlier this month by the California Public Utilities Commission.

As part of broad-based statewide investigation the first half of1999, California will explore possibilities for opening upelectricity distribution to competition as an extension of thestate’s ongoing energy industry restructuring. Potential impact onthe natural gas industry will be part of the investigation orderedearlier this month by the California Public Utilities Commission.