Last

CNG Transmission Corp. last week called on FERC to dismiss thepending application of potential competitor Independence Pipeline,claiming that the 400-mile project was based on out-dated andfaulty demand projections for the Northeast gas market and lackedbinding precedent agreements. In addition, it said Independence hasdrawn “substantial opposition” from affected landowners andenvironmental groups.

After nearly two years of deliberation, the Commodity FuturesTrading Commission last week conditionally approved a new rule,permitting the New York Mercantile Exchange to hold a three-yearpilot during which futures contracts can be exchanged for positionsin swap transactions (EFS transactions).

The Commodity Futures Trading Commission (CFTC) last weekapproved a New York Mercantile Exchange (NYMEX) application totrade electricity futures and options based on delivery at thePennsylvania-New Jersey-Maryland (PJM) western hub. And slated forapproval today is the proposed and competing Chicago Board of Trade(CBOT) PJM western hub electricity futures contract.

FERC last week upheld an earlier order that paved the way forGeorgia’s largest utility to implement retail unbundling behind itscitygate in late 1998.

Georgia deregulation proved it is in full throttle last week asthe municipality representing the city of Marietta formed analliance with Columbia Energy’s Georgia affiliate, Columbia EnergyRetail Corp. The alliance calls for a 10-year deal with the city ata guaranteed base price of 39.9 cents per therm for one year and acontractual promise to be competitive for the other nine. Themunicipality includes between 30,000 and 40,000 gas customers.

FERC last week changed its tune and cleared the way for NorthernNatural Gas to acquire off-system, interruptible capacity fromthird-party pipelines. On rehearing of a July order, the Commissionfound that since Northern Natural sought the IT capacity to augmentits own operations, rather than for the purpose of re-marketing it,its request did not raise the concerns cited in a 1997 TexasEastern Transmission (Tetco) case.

Producers and distributors last week indicated they generallybacked the thrust of FERC’s proposed rule to expand the blanketconstruction and abandonment certificate authority for pipelinesunder the Commission’s Part 157 regulations, but they – like thepipelines – saw some major problem areas with it.

A major pipeline group last week said there was “much to like”in the notice of proposed rulemaking (NOPR) that would, among otherthings, expand the blanket construction and abandonment authorityfor pipelines under FERC’s Part 157 regulations, but it also had”several major concerns.”

The severe winter cold snap last week triggered unprecedentedprice spikes at spot points in the Pacific Northwest and NorthernCalifornia. PG&ampE Citygate prices hit $6.18/MMBtu on Monday andwere near $5 on Tuesday. Prices jumped to $11.05/MMBtu at Sumas onthe previous Friday for weekend flow, and on Monday and Tuesdaystayed north of $6.