Introduction

The introduction of the 1.325 Bcf/d Alliance Pipeline into theNorth American gas market appears to have had less of an impact ongas flows out of western Canada than expected, according torepresentatives of TransCanada PipeLines, PG&E Gas Transmissionand Alliance. Extremely strong gas demand in the Pacific Northwest,California and in the Midwest has produced continued high loadfactors on TransCanada and PG&E GT-NW despite the presence oftheir huge new rival for Western Canadian supply.

Change in the electric industry will mirror what took place inthe gas industry following deregulation and the introduction ofcompetition, particularly with regard to trading, Enron PresidentJeffrey K. Skilling told attendees at Ernst &amp Young LLP’s ninthannual Energy Conference last week in Houston.