How does the gas industry get to the Internet? Debate. Whilepipelines puzzle over what FERC meant when it prescribed Internetaccess for pipeline transactions, industry players debate where andhow far standardization should go.
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Puget Sound and Duke to Coordinate Trading
Puget Sound Energy of Bellevue, WA, and Duke Energy Trading andMarketing (DETM) agreed to coordinate marketing and tradingactivities in 14 western states and British Columbia.
Maritimes Requests 1-Year Delay for Phase I
There’s no point in opening the valves on a new pipeline if noone is there to take the gas, Maritimes and Northeast Pipeline toldFERC this week. The pipeline said its only shipper, affiliate DukeEnergy, has backed out of Phase I of its project, deferring itsrequest for 60 MMcf/d of firm transportation until Nov. 1, 1999. Asa result, Maritimes has requested it be allowed to extend itsin-service date by a year and defer cost-recovery while movingforward on construction of most of the system.
Aquila Customers Prepay for Interest Rate Hedge
Aquila Energy has won a long-term, $24.3 million contract tosupply gas to to Nebraska municipals under a pre-paid contractdriven by the current low interest rates. Aquila will supply14,419,850 MMBtu over 10 years to Energy America, which isaffiliated with the Nebraska Municipal Power Pool, the MunicipalEnergy Agency of Nebraska and the Nebraska Public Gas Agency.
HI Buys Another SoCal Edison Plant
Houston Industries Power Generation (HIPG) agreed to buySouthern California Edison’s (SCE) Ormond Beach Generating Stationfor $43 million. Ormond Beach has two gas-fired units totaling1,500 MW, and the deal includes land adjacent to SCE’s Coolwaterplant in the Mojave Desert, which Houston Industries bought inNovember.
Tengasco Completes Eastern Tennessee Pipe
Tengasco, Inc. of Knoxville, TN, completed its $10 million,28-mile pipeline in Eastern Tennessee. The pipeline originates atthe company’s Swan Creek Natural Gas Field into Rogersville, TN.Hawkins County Utilities District has connected Swan Creek to itsdistribution network. Three small tie-ins and testing of facilitiesremain before Tengasco furnishes gas to East Tennessee bymid-April.
Administration’s Electricity Plan to be Unveiled Today
The Clinton administration will announce today a “plan” or “listof principles” for restructuring the electricity industry. “It canbe introduced as legislation. It’s written in legislative language.This is what everyone’s been waiting for,” said Bill Wicker, aspokesman for the Department of Energy.
CFTC Approves Electric Contracts
Three commodity futures exchanges are expected to launch six newelectricity futures and options contracts this year based ondelivery east of the Mississippi and it looks like two Nymexcontracts could be the first to market. The Commodity FuturesTrading Commission yesterday approved the Nymex contracts, whichare based on delivery through the Cinergy transmission system (inOhio) and through the Entergy transmission system (in Louisiana). Athird Nymex electricity contract, based on delivery through thePennsylvania-New Jersey-Maryland Interconnection transmissionsystem, was not submitted to the CFTC because of recent changes inPJM policies. The PJM contract is expected to be submitted at alater date when the most active trading locations in the PJM poolare identified.
Fax-Back Quote Service Seen as Marketing Tool
Prosper Business Development Corp. of Columbus, OH, formed adivision to assist energy companies in dealing with marketingchallenges of deregulation. Prosper NRG Marketing offers a varietyof turnkey products designed to enhance marketing efforts to thecommercial and residential segments of the energy market. Theproducts can be used to sell energy without a direct sales force.
Screen Leads Most Eastern Markets Higher
Cash prices were mostly higher Monday, but there was littleconsistency from market to market. Western points mostly rangedfrom flat to down a nickel, while Northeast citygates andAppalachian pipes jumped by a nickel or more as snowy conditionsstill lingered in some areas. One forecasting service said the fiveinches of snow dumped in the New York City area over the weekendwas 10 times what it had received all winter.