Implementing

Cincinnati Gas & Electric Co. (CG&E) and American Electric Power (AEP), two of the largest utilities in Ohio, are one step closer to implementing electric customer choice.

Cincinnati Gas & Electric Co. (CG&E) and AmericanElectric Power (AEP), two of the largest utilities in the state,are one step closer to implementing electric customer choice in theOhio market.

Although industry comments on Order 637 still were tricklinginto FERC late Friday, it was clear that gas producers, both majorsand independents, and industrial customers had some of the biggestproblems with the final order by far, while the interstatepipelines and LDCs sought only minor tweaking of a “discrete” setof issues.

Based on weather forecasts and projected demand, Sonat isimplementing an OFO Type 3 today for seven system groups:Birmingham Group, South Main Zone 2, Atlanta Group, South Main Zone3, East of Wrens, Brunswick Line and Savannah Line.

As part of a comprehensive settlement filed at FERC Natural GasPipeline Company of America (NGPL) has proposed implementing aninteractive auction process for posting and awardingtransportation/storage capacity on its system within less than twoyears. Although the settlement reserves five contested issues, allof the “active” parties have indicated their support for theproposal.

“Gas Producers cannot justify the expense of implementing[electronic data interchange] on all pipelines because ofinsufficient volumes on any particular pipeline,” the Natural GasSupply Association said last week in opposing FERC’s mandate foracross the board implementation of EDI by June 1, 1999.

Reacting to frigid weather spreading into the Southeast, Sonatis implementing an Operational Flow Order Type 3 effective todayfor four groups: Birmingham Group, South Main Zone 2, South MainZone 3 and Brunswick Line. The OFO will be extended Wednesday tothe East of Wrens and Savannah Line groups. Due to compressorproblems, Sonat said, the level of interruptible service in the twoSouth Main zones will be less than normal in limitation periods. Inaddition, an OFO Type 22 notice to become effective Wednesday forseven groups was issued by Sonat affiliate South Georgia NaturalGas.