Moving

Northern Border Partners L.P. says it’s moving quickly to scoopup Midwestern Gas Transmission from El Paso Corp. because itbelieves the pipeline is destined to become strategically moreimportant as an outlet for western Canadian gas and eventuallyAlaskan gas, as well as a key supplier for gas-fired powergeneration plants in the Midwest.

Northern Border Partners L.P. is moving quickly to scoop upMidwestern Gas Transmission from El Paso Corp. because it believesthe pipeline is destined to become strategically more important asan outlet for western Canadian gas and eventually Alaskan gas, aswell as a key supplier for generation plants in the Midwest.

American Electric Power and Dow Chemical are moving forward withplans to construct a $325 million natural gas-fired cogenerationplant at Dow’s chemical complex in Plaquemine, LA. AEP also signeda 20-year contract for an undisclosed amount to sell all of thefacility’s 900 MW generation to Tractebel SA’s energy marketingunit once it is online, expected in early 2003.

Because of interest in moving more natural gas from the prolificPiceance Basin in northwest Colorado to interconnects withNorthwest Pipeline Co. in Rio Blanco County, CO, and QuestarPipeline Co. in Utah, Colorado Interstate Gas has begun an openseason to solicit support for expanding its Parachute CreekLateral.

Making himself a domestic energy diplomat moving betweenmeetings in Washington, DC, and the West, Energy Secretary BillRichardson last week supported the need for a western regionalwholesale power price cap as he extended for another week hisearlier emergency order requiring generators and marketers to makepower available to the continuing tight California market to avoidthe threat of rolling blackouts. The order, which was first issuedon Dec. 14, expired Tuesday at midnight. The new order will remainin effect until Dec. 27, unless modified.

A decision is promised by spring on moving forward with aproject to increase natural gas production offshore of Nova Scotiaby at least 80%.

The California power debacle, with its political and financialramifications, coupled with high natural gas and heating oil pricesand dire government warnings of even worse prices this winter, hasled to a host of actions by those who deal with retail customersand constituents.

Ridge Energy Storage (RES) is moving forward on a fairlylarge-scale power project that will incorporate the rarelyimplemented process of using compressed air storage to produceelectricity. Ridge has entered into an exclusive arrangement withTexas Brine Company LLC (TBC) to develop up to 10 of theseprojects, with potential capacity to produce up to 600 MW each, ata number of Texas Brine’s brine production sites at salt cavernsalong the Gulf Coast.

Ridge Energy Storage (RES) is moving forward on a fairlylarge-scale power project that will incorporate the rarelyimplemented process of using compressed air storage to produceelectricity. Ridge has entered into an exclusive arrangement withTexas Brine Company LLC (TBC) to develop up to 10 of theseprojects, with potential capacity to produce up to 600 MW each, ata number of Texas Brine’s brine production sites along the GulfCoast.