Million

Southern Natural Gas filed an application with FERC last week for a $24.9 million pipeline expansion project designed to serve a new power plant being built in Calhoun County, AL, by Calhoun Power and to provide additional capacity for Alabama Gas Co. and the City of Sylacauga, AL. The project will add 33 MMcf/d of firm capacity to the Sonat system, and when combined with existing unused summer capacity, will enable Southern to transport a total of 118 MMcf/d for the three customers.

Southern Natural Gas filed an application with FERC this week for a $24.9 million pipeline expansion project designed to serve a new power plant being built in Calhoun County, AL, by Calhoun Power and to provide additional capacity for Alabama Gas Co. and the City of Sylacauga, AL. The project will add 33 MMcf/d of firm capacity to the Sonat system, and when combined with existing unused summer capacity, will enable Southern to transport a total of 118 MMcf/d for the three customers.

Days after receiving preliminary authorization from FERC for a $134 million, 24-mile Boston extension project (see NGI, April 16), Maritimes & Northeast is petitioning FERC for authorization to operate additional compression units at its existing compressor stations in Richmond and Baileyville, ME. The new compression will bring the pipeline’s capacity to 440,000 Dth/d from the current 400,000 Dth/d.

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.

Days after receiving preliminary authorization from FERC for a $134 million, 24-mile Boston extension project (see Daily GPI, April 16), Maritimes & Northeast is petitioning FERC for authorization to operate additional compression units at its existing compressor stations in Richmond and Baileyville, ME. The new compression will bring the pipeline’s capacity to 440,000 Dth/d from the current 400,000 Dth/d.

FERC’s order requiring potential refunds of up to $69 million on January bulk power sales in California has come under further assault, with San Diego County claiming that the “proxy market clearing price” established by the Commission in the order allows sellers to recover almost double their marginal production costs, and that the decision not to subject sales during non-Stage 3 emergencies to refunds was grossly unfair. It further blasted FERC for not ordering power suppliers to publicly disclose their rates and costs.

Strong gas-fired power generation and economic growth inCalifornia prompted Transwestern Pipeline to propose a $93 millionexpansion project yesterday. The pipeline received enough marketinterest during an open season last month to file with FERC for a150,000 MMBtu/d expansion of its mainline to Southern California.The proposed Red Rock Expansion was filed yesterday and would beginservice next June if approved.

Westcoast Energy Inc. finalized on Wednesday its previouslyannounced acquisition of the remaining 50% of the Empire StatePipeline for approximately $75 million, increasing its stake in thenatural gas line to 100%. The company first announced it wasacquiring the remaining 50% interest from Coastal Corp. in Novemberof 2000 (see Daily GPI, Nov. 10, 2000). The 156-mile pipeline runsfrom the Canada/United States border near Niagara, through New YorkState to an interconnect near Syracuse, NY. The pipeline has arated capacity of 525 MMcf/d. “We are pleased to now have fullownership of this valuable link to our Union Gas system, our Dawnhub and markets in Upper New York State and the northeast U.S.,”said Michael Phelps, CEO of Westcoast.

FERC’s order requiring potential refunds of up to $69 million onJanuary bulk power sales in California has come under furtherassault, with San Diego County claiming that the “proxy marketclearing price” established by the Commission in the order allowssellers to recover almost double their marginal production costs,and that the decision not to subject sales during non-Stage 3emergencies to refunds was grossly unfair. It further blasted FERCfor not ordering power suppliers to publicly disclose their ratesand costs.