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Continuing its run as one of the most successful customer choiceprograms in the country, Columbia Gas of Pennsylvania said lastweek its interim restructuring filing was approved by thePennsylvania Public Utility Commission (PUC). The decision allowsall 382,000 of Columbia’s residential and small-commercialcustomers the right to choose a new supplier effective Nov. 1.

November Henry Hub futures burst through the 40-day movingaverage at the open yesterday and never really looked back. Aftercrossing $2.859, speculative fund buyers jumped in, sending thecontract 10.2 cents higher for the day to $2.927/MMBtu. Decembergained 10.7 cents, settling at $3.120. January jumped 9.9 cents to$3.130, and February moved up 7.2 cents to $2.945.

The Oklahoma Corporation Commission (OCC) and Oklahoma NaturalGas Co. (ONG) hammered out which of the LDC’s transmission anddistribution assets will be regulated and which will be unregulatedand open to competitive bidding. Once sufficient competition existsin the marketplace, competitors will bid to provide service usingthe unbundled assets. Unbundled assets are to be removed from ONG’srate base.

For the third morning in a row natural gas futures gapped higherat the open before continuing upward as traders covered shortpositions in anticipation of Tropical Storm Bret becoming the firsthurricane in the 1999 Atlantic season. But after notching a $3.015high shortly after noon, the September contract was hit with a waveof profit-taking that delivered the spot month back down to settleat $2.938. Estimated volume was healthy, with 99,927 contractschanging hands.

FERC Chairman James J. Hoecker said the Commission will open anew office, called the Office of Energy Projects, which will havethe engineering and environmental expertise to certificate new gaspipelines and authorize and monitor hydroelectric projects. The newoffice will include the functions formerly conducted by the Officeof Hydropower Licensing and most of the certification functions ofthe Office of Pipeline Regulation. Another new office, the Officeof Markets, Tariffs and Rates (OMTR), also will handle some of thecertification duties. “Energy Projects and Markets, Tariffs andRates effectively represent two major and distinct areas of theCommission’s technical expertise and statutory responsibility,”Hoecker said, adding that Energy Projects will focus on siting andenvironmental aspects of projects while OMTR will focus onpromoting competition and protecting against market power.

Due to its success in the race for Georgia gas customers,Georgia Natural Gas Services (GNGS) announced Monday it will open anew call center in Cobb County to help answer newly-acquiredcustomers’ questions. The Atlanta Gas Light (AGL) affiliate has wonover one-third of the 839,000 total switches, second only to ScanaCorp.’s 40% market share.

After a lower open at the bell yesterday, the futures marketmoved higher and easily recouped Tuesday’s losses. The Julycontract finished up 6.7 cents and in doing so registered anoutside up-day on the daily charts.

Palmetto Interstate Pipeline Co., a partnership of SouthernNatural and Carolina Power & Light, said it is extending itsopen season for firm transportation capacity on its proposed systemuntil June 30. Interested parties should contact Sonat’s MarkLimbaugh at (800) 633-8570 or CP&L’s Rob Caldwell at (919)546-4552. Palmetto is planning to build a line that would run fromSonat’s terminus in Aiken, SC, to an interconnect with NorthCarolina Natural Gas – which is being purchased by CP&L – inRoberson, NC. CP&L plans to subscribe for a substantial portionof Palmetto’s 200 MMcf/d to 300 MMcf/d capacity to fuel newelectric generation being developed in the Carolinas, with theremainder to be used to increase regional gas availability.CP&L said it plans to build 4,000 MW of gas-fueled generationin the Carolinas by 2007. Palmetto said it plans to have Phase I ofits system in service in April 2002 with up to 300 MMcf/d ofcapacity. Two later phases in the following two years would addcapacity to the system.

Transco extended Thursday the open season for FT service on itsSundance Expansion Project, originally scheduled to end June 1,through June 18. Sundance will provide extra capacity from Station65 in Louisiana to Station 165 in Virginia and is proposed to beginservice by April 1,2002.