Less

Dominion East Ohio announced recently that its sales customers will pay 29% less for natural gas than they now do under a new rate that will be frozen through April 29, 2002, due to an innovative gas cost recovery (GCR) filing made with the Public Utilities Commission of Ohio (PUCO). The company said about 580,000 of its 1.2 million customers will be affected by the change because they buy natural gas from the company at rates regulated by the PUCO. Other customers buy gas from competitive suppliers under market-based rates.

Dominion East Ohio announced on Friday that its sales customers will pay 29% less for natural gas than they now do under a new rate that will be frozen through April 29, 2002, due to an innovative gas cost recovery (GCR) filing made with the Public Utilities Commission of Ohio (PUCO). Dominion East said about 580,000 of its total 1.2 million customers will be affected by the change because they buy natural gas from the company at rates regulated by the PUCO. Other customers buy gas from competitive suppliers under market-based rates.

Gas suppliers and buyers got what they wanted north of the U.S. border and a truly competitive market in delivery services is at hand, TransCanada PipeLines Ltd. told the National Energy Board. TransCanada predicts that within five years, two-thirds of its long-distance capacity for 7.5 Bcf/d will be sold the same way as most of the gas in its lines, on short contracts. “The traditional regulatory compact,” which kept the system reliably full on long service contracts, “has been dismantled” by allowing rivals to build new capacity.

Natural-gas suppliers and buyers got what they wanted north of the U.S. border–a truly competitive market in delivery services is at hand, TransCanada PipeLines Ltd. has told the National Energy Board. TransCanada predicts that within five years, two-thirds of its long-distance capacity for 7.5 Bcf/d will be sold the same way as most of the gas in its lines, on short contracts. “The traditional regulatory compact,” which kept the system reliably full on long service contracts, “has been dismantled” by allowing rivals to build new capacity.

Following years of planning, Eastern North Carolina Natural Gas Co. (ENCNG), a non-profit partnership between the Albemarle Pamlico Economic Development Corporation (APEC) and Raleigh, NC-based Progress Energy, reported that their long-awaited gas supply project to residential, commercial and industrial consumers across a 14-county section of eastern North Carolina is under way.

Following years of planning, Eastern North Carolina Natural Gas Co. (ENCNG), a non-profit partnership between the Albemarle Pamlico Economic Development Corporation (APEC) and Raleigh, NC-based Progress Energy, reported that their long-awaited gas supply project to residential, commercial and industrial consumers across a 14-county section of eastern North Carolina is under way.

Less than a week after California’s governor plucked David Freeman to head the state’s stepped up, $850 million energy conservation program, the nation’s largest municipal utility in Los Angeles turned to a consultant and former head of a Texas private sector utility to replace Freeman as its general manager. Texan-turned-California-based consultant, David Wiggs Jr. will oversee the $3 billion LA Department of Water and Power (LADWP) for five months, beginning May 1. During that time it is expected that the incoming new LA mayor will launch a nationwide search for a permanent replacement for Freeman, who has attained near-star status at LADWP and in other roles helping Gov. Gray Davis wrestle with the ongoing crisis among investor-owned utilities in the state. A utility regulatory lawyer with a finance background, Wiggs served as chairman, COO and president of El Paso Electric Co., leading the utility’s turnaround in the early 1990s. Since 1997, he has been a consultant, at DHW Consulting of Newport Beach, CA,working briefly with DWP in the spring of 1997 before Freeman was brought on board. He recently served as chief energy adviser to the speaker of the state legislature’s Assembly.

Duke Energy reported on Monday it would be willing to acceptless money for the power it sold in California during January andFebruary, as long as assurances are made by the CaliforniaIndependent System Operator (Cal-ISO) and the California PowerExchange (Cal-PX) that it will be paid. Duke said if guarantees aremade, it will waive the credit premiums on its bids and accept theFederal Energy Regulatory Commission’s (FERC) clearing price fortransactions during those months.

The best way to ease the burden of high natural gas costs is tolet producers produce and not overly regulate generators, industryofficials told the Texas Railroad Commission this week. The TRC,which is preparing recommendations on the state’s natural gasmarket, will hear testimony from stakeholders again Thursday beforefinalizing its recommendations for state legislators.