Interstate

Williams: Volumetric Rates Needed to Cater to Generation

A Williams Gas Pipeline executive last week broke ranks with theinterstate pipeline industry’s generally undivided support forstraight-fixed variable (SFV) rate design, advocating instead amove to a volumetric design. He believes such a rate design will beessential for gas pipelines to meet the needs of power generators,and for the industry as a whole to reach its goal of a 30 Tcfmarket

September 20, 1999

Pipelines Conceal ROR Data, Producer Charges

An executive with Conoco Inc. this week accused interstatepipelines of intentionally burying information that customers needto determine whether pipes are exceeding their authorized rates ofreturn on equity (RORs), which he strongly suspects is the case.

September 17, 1999

FERC Favors Incremental Pricing for New Pipe Projects

The Federal Energy Regulatory Commission yesterday significantlyraised the bar for interstate pipelines seeking to construct newprojects by requiring that the proposed facilities be able to standon their own financially.

September 16, 1999

Current Market Prices

Natural Gas Intelligence the weekly gas market newsletter published : August 16, 1999

August 16, 1999

Transportation Notes

Palmetto Interstate Pipeline Co., a partnership of SouthernNatural and Carolina Power & Light, said it is extending itsopen season for firm transportation capacity on its proposed systemuntil June 30. Interested parties should contact Sonat’s MarkLimbaugh at (800) 633-8570 or CP&L’s Rob Caldwell at (919)546-4552. Palmetto is planning to build a line that would run fromSonat’s terminus in Aiken, SC, to an interconnect with NorthCarolina Natural Gas – which is being purchased by CP&L – inRoberson, NC. CP&L plans to subscribe for a substantial portionof Palmetto’s 200 MMcf/d to 300 MMcf/d capacity to fuel newelectric generation being developed in the Carolinas, with theremainder to be used to increase regional gas availability.CP&L said it plans to build 4,000 MW of gas-fueled generationin the Carolinas by 2007. Palmetto said it plans to have Phase I ofits system in service in April 2002 with up to 300 MMcf/d ofcapacity. Two later phases in the following two years would addcapacity to the system.

June 9, 1999

Medicine Bow Gets Preliminary Nod from FERC

Wyoming Interstate’s proposed $78 million Medicine Bow Lateralin the Powder River Basin won preliminary approval from FERC lastweek. In a draft order, the Commission said the pipeline, whichwould provide 260,000 Dth/d of new firm take-away transportationcapacity for Wyoming producers, would be in the public interest,subject to a final order following environmental review.

May 3, 1999

In Brief

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.

May 3, 1999

Medicine Bow Gets Preliminary Nod from FERC

Wyoming Interstate’s proposed $78 million Medicine Bow Lateralin the Powder River Basin won preliminary approval from FERCyesterday. In a draft order, the Commission said the pipeline,which would provide 260,000 Dth/d of new firm take-awaytransportation capacity for Wyoming producers, would be in thepublic interest, subject to a final order following environmentalreview.

April 29, 1999

Open Season for New Pipe into Wisconsin

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.

April 26, 1999

Dynegy Sees Secondary Market for Recourse Services

Giving interstate pipelines the authority to negotiate terms andconditions of service would pose “significant dangers tocompetitive markets,” Dynegy Inc. says. But it does favor givingsuch authority to pipeline customers – the buyers of recourseservices – to allow them to sell or trade components of theirrecourse services to and among themselves. In short, theHouston-based marketer envisions creating a secondary market forrecourse service components that would compete head-to-head withthe primary market.

April 21, 1999