Forward

Guardian Pipeline, a planned new interstate natural gas pipelineto serve northern Illinois and southern Wisconsin, is movingforward with an open season that will begin May 4. The pipelinewill have a minimum capacity of 650 MMcf/d and will be expandable,depending on the market response, to a capacity of up to 1.1 Bcf/d.It already has signed a firm precedent agreement with Wisconsin Gasto transport 650 MMcf/d, beginning Nov. 1, 2002, the project’splanned in-service date. The pipeline will transport gas frominterconnections with Alliance, Northern Border, NICOR, Midwestern,NGPL and the proposed Tristate Pipeline near Joliet, IL, tonorthern Illinois and southeastern Wisconsin markets. It willconsist of 24,000 hp of compression and 147 miles of 36-inch pipeextending from Joliet to the Watertown, WI area. Guardian isjointly owned by WICOR, CMS Energy Corp. and Viking GasTransmission, with each holding a one-third interest. The openseason closes June 3. For more information contact George Hass,313-436-9238.

Guardian Pipeline, a planned new interstate natural gas pipelineto serve northern Illinois and southern Wisconsin, is movingforward with the announcement that its “open season” will beginTuesday, May 4, 1999, at 8 a.m. CDT. Guardian Pipeline is jointlyowned by WICOR, CMS Energy Corp. and Viking Gas Transmission, witheach holding a one-third interest.

Shell Exploration & Production Co. (SEPCo) plans to moveforward with its 17th deepwater project while at the same timerededicating itself to a cost cutting program for its deep-wateractivity.

Despite much-above- normal temperatures across much of the U.S.,natural gas squeezed out small gains at the New York MercantileExchange yesterday in a mostly dull trading session. Throughoutmost of the day the March contract looked as if it would closeunchanged, but a late rally put a positive spin on the day’sevents, nudging the prompt month 2 cents higher to finish at$1.838. Estimated volume, registering a measly 37,697 contracts,confirmed the sluggish nature of the market.

A battle over the role of municipal utilities in a deregulatedenergy market apparently stands in the way of final approval ofcomprehensive energy deregulation legislation in New Jersey.Tuesday, the state senate approved the bill, S5, containing anenergy deregulation package that would force the state’s gasindustry to allow supply competition statewide starting Dec. 31,and statewide electric generation competition starting August 1.The senate passed the bill by a margin of 28 to seven with threeabstentions and two senators not present. The bill then made itsway to the general assembly where, late Tuesday night, thelegislators amended it and sent it back to the senate.

Giving gas unbundling efforts in California a shot in the arm,FERC last week approved a major agreement to restructure thelong-term transportation and gas sales arrangements that haveenabled Southern California Gas (SoCalGas) over the years toreceive imports of Canadian gas through its paper pipelineaffiliate, Pacific Interstate Transmission Co. (PITCO).

The New York Public Service Commission released the text of itspreviously announced gas unbundling policy statement, laying outits plan to force the state’s LDCs out of the merchant functionwithin three to seven years (see NGI Oct. 12, 1998) and endmandatory capacity assignment by next April. But it can expectstrong opposition from a number of New York LDCs who aren’t willingto give up gas sales and who say capacity assignment is areasonable way to recover stranded costs.

Dynegy is moving forward with final permitting and constructionof its 800 MW generating facility in Rockingham County, NC.Construction will begin upon receipt of final environmental permitsand the plant will be in service in June of 2000.

While neighboring LDC Oklahoma Natural Gas continues its attemptto stave off unbundling, Arkla moved forward last week with acollaborative process involving stakeholders that is intended toproduce a downstream unbundling plan next April with full retailcompetition by October 1999.