Green

FERC tied up all the loose ends of the Maritimes &amp NortheastPipeline project in a draft order released last week, clearing theway for the pipeline to begin delivering about 350 MMcf/d of SableIsland gas to power plants, paper mills and new markets in Maineand other New England states this fall.

The New York State Public Service Commission (NYPSC) last week unanimously approved the merger of Consolidated Edison of New York and Orange and Rockland Utilities. NYPSC Chairman Maureen O. Helmer said Consumers will benefit from the strength of the companies’ combined management and from merger-related savings over the next five years. “The merger has achieved broad public support, and after thorough review and analysis by staff and interested parties, the commission concludes it serves the public interest.”

Viking Gas Transmission got some good news Wednesday as FERCapproved a looping expansion of its system that will make itpossible for existing customers between the northern Minnesotaborder and West-Central Wisconsin to receive up to 28,000 Dth/d ofadditional gas supplies by the end of the year.

The White House has given the green-light to the renomination ofCommissioner Curt Hebert Jr. for a full five-year term at theFederal Energy Regulatory Commission. “It’s my understanding thatthey’ve signed off on my nomination,” Hebert told NGI.SenateMajority Leader Trent Lott (R-MS) sent a letter to the White Housein January seeking his renomination. The Senate EnergyCommitteeis expected to schedule a hearing after Congress returns fromrecess in mid-April, at which time it will begin to schedule ahearing.

The White House has given the green-light to the renomination ofCommissioner Curt Hebert Jr. for a full five-year term at theFederal Energy Regulatory Commission.

FERC last week gave the green light to the merger between NewYork-based Consolidated Edison Inc. and neighboring Orange andRockland Utilities (O&ampR), moving them a step closer to becomingone of the most formidable electric and gas utility competitors inthe east. The deal, which has been valued at $790 million, isexpected to be completed by mid-year – assuming the regulatoryapprovals of other federal and state agencies are forthcoming.

California regulators have given the green light to continueindefinitely the three-year-old incentive gas buying program atSouthern California Gas Co., dispensing at year-end 1998 with anannual review of the program, which has even drawn praise from theusually critical Office of Ratepayer Advocates (ORA) at theCalifornia Public Utilities Commission. The program reportedly hassaved millions of dollars for SoCalGas’ smallest customers who relyon the utility to buy their supplies. In 1998, SoCalGas reportsearning a $2 million award for its shareholders for the latest12-month operations of its so-called “Gas Cost IncentiveMechanism.” Based on benchmarked market prices if SoCalGas can dosignificantly better than the market average, resulting inquantifiable savings for its merchant customers, part of thosesavings flow back to its shareholders, who in this case are ownersof the SoCal parent, Sempra Energy. Shareholders have earned $16million in rewards through the incentive gas-purchase program overthe past three years, according to SoCalGas.

California regulators have given the green light to continueindefinitely the three-year-old incentive gas buying program atSouthern California Gas Co., dispensing at year-end 1998 with anannual review of the program, which has even drawn praise from theusually critical Office of Ratepayer Advocates (ORA) at theCalifornia Public Utilities Commission. The program reportedly hassaved millions of dollars for SoCalGas’ smallest customers who relyon the utility to buy their supplies.

The 1 Bcf/d Vector Pipeline project won preliminary approval onnon-environmental grounds from FERC yesterday. The Commission saidno evidence was produced to demonstrate the Midwest project, whichwould link the Chicago, IL, and Dawn, ON, gas transportation hubs,was not required by the public convenience and necessity.