Needed

Midcoast Interstate Transmission and two groups oflandowners/environmentalists have lost their year-long battle incourt to overturn FERC orders awarding a certificate to SouthernNatural Gas to build and operate an extension into northernAlabama.

ScottishPower and PacifiCorp received Nuclear RegulatoryCommission (NRC) approval of their merger. It is the final federalapproval needed to complete the transaction. NRC approval isrequired because PacifiCorp owns a 2.5 percent share in the TrojanNuclear Plant in Oregon. The plant has not operated for severalyears, and is in the process of being decommissioned. “With allfederal, and four of the six state approvals in place, we are wellon track to completing the merger by the end of the year,” saidPacifiCorp CEO-designate Alan Richardson.

The U.S. portion of TriState Pipeline got some much-needed goodnews last week when FERC issued a preliminary determination on thenon-environmental aspects of the project after resolving a stickyjurisdictional issue. But whether it will be enough to kick-startthe troubled project, which is lagging far behind the competingVector Pipeline, seemed doubtful.

The troubled TriState Pipeline got some much-needed good newsyesterday when FERC issued a preliminary determination on thenon-environmental aspects of the project.

A Williams Gas Pipeline executive last week broke ranks with theinterstate pipeline industry’s generally undivided support forstraight-fixed variable (SFV) rate design, advocating instead amove to a volumetric design. He believes such a rate design will beessential for gas pipelines to meet the needs of power generators,and for the industry as a whole to reach its goal of a 30 Tcfmarket

Houston-based Reliant Energy Services Inc. will supply most ofthe gas needed by the Los Angeles Department of Water and Power(LADWP) and maximize the municipal utility’s gas assets. A one-yearagreement calls for Reliant Energy to provide a minimum of 9Bcf/year as well as administer the department’s interstate gastransportation agreements. The gas to be purchased is worth about$25 million.

Before handing down a final decision, the Florida Public ServiceCommission decided last week it needed one last look at the detailsof a commission staff proposal that would require the state’s gasutilities to file small customer unbundling tariffs by next March.PSC commissioners requested staff schedule at least one moreworkshop during which it would present the details of the proposedunbundling rule to the commissioners.

After a brief and uninspired upside push was thwarted, naturalgas futures continued lower yesterday as follow-through sellingtook prices to their lowest level since April. No fresh news wasseen influencing prices, and as a result bears remained solidly incontrol, traders said. The August contract finished down an evennickel at $2.141.

The storage-poor Pacific Northwest could get some needed reliefin the near future. Avista Corp. and PG&ampE GasTransmission-Northwest (PG&ampE GT-NW) have joined forces toinvestigate building another underground natural gas storagefacility in an aquifer in eastern Washington near theinterconnection of PG&ampE GT-NW and Williams (Northwest Pipeline)at Stanfield, OR.