Future

The future of Transcontinental Gas Pipe Line’s MarketLinkexpansion got a lot brighter yesterday when FERC issued acertificate for the Northeast-bound project after severing it fromthe distressed Independence Pipeline and SupplyLink expansion. Theoutlook for the associated Independence and SupplyLink pipelineprojects, on the other hand, turned decidedly bleaker as both wereplaced on Death Row.

California regulators Thursday approved a series of rateadjustments for Southern California Gas Co. and San Diego Gas andElectric Co. that help encourage future merchant natural gaspipeline and electric power plant projects as well as resulting ina $248 million gas utility net rate decrease. For SoCalGas thatequals $210 million in rate cuts, the bulk of the reduction ($158.9million) going to residential and small business customers.SDG&E’s gas rates drop a total of $37 million, $18 million ofwhich is for small, core customers.

While the sheer number of pending and projected natural gaspipeline projects may be staggering, that’s not what sets themapart from projects that preceded them. Rather, the distinguishingfactor is that they’re coming at a time when the “complexity andvolume” of environmental issues and the level of landowneranti-project sentiment have reached unparalleled heights, says atop FERC official.

The future of merchant power will be inhibited unless there arenew approaches and new perceptions about the technical, economicand political approaches applied, according to a panel of expertsat GasMart/Power 2000 Tuesday in Denver. Regardless of what preciseindustry changes are made, not all of the proposed new power plantswill get built, and distributed generation ultimately will have toplay a role to satisfy the expected growing demand that equates toabout 5 Tcf of added gas over the next 10 years, according topanelists discussing “The Runaway World of Merchant Power.”

Florida Power & Light Co. says it will meet future customergrowth in this decade by increasing the electricity generatingcapability of its system by 24% using environmentally friendlynatural-gas technology.

Sempra Energy shared its vision of the future with industryanalysts last week and said the key to earnings growth lies withunregulated businesses. The company’s goal of growing earnings pershare by 8 to 10% on a compound annual average basis over the nextfour years means it will be looking less and less like a utility.

Sempra Energy shared its vision of the future with industryanalysts last week saying the key to earnings growth lies withunregulated businesses. The company’s goal of growing earnings pershare by 8 to 10% on a compound annual average basis over the nextfour years means it will be looking less and less like a utility.

BP Amoco released what it called strong fourth quarter 1999results, and CEO John Browne had favorable remarks regarding futurenatural gas prices.

BP Amoco released what it called strong fourth quarter 1999results, and CEO John Browne had favorable remarks regarding futurenatural gas prices.