Order

Florida Gas Transmission has filed an application with FERC toupgrade two compressor stations in order to add 80,000 MMBtu/d ofmainline firm transportation capacity on the Western Division ofthe pipeline for service to Alabama Electric Cooperative, which hassigned a 12-year contract for the entire amount. FGT requested itbe granted authorization to begin construction and operation of the$6.9 million expansion on Nov. 1, 2000. It would receive the gasfrom its Destin Pipeline interconnect and transport it 90 miles toAEC’s existing meter station yard in Alabama. FGT plans to add4,800 hp of compression at two units at station 11A. It isproposing to charge negotiated rates for the service to AEC, andsaid it expects to be “fully reimbursed for the cost of thefacilities.” The pipeline told FERC, “under the Commission’s Sept.15, 1999 ‘Statement of Policy’ concerning natural gas pipelinefacilities, this proposal meets the criteria for rolled-inpricing.”

Southern LNG Inc. has launched a scathing denial of theallegations that it conducted an open season in secret in order toaward to an affiliate all the teminalling capacity in its liquefiednatural gas (LNG) facilities on Elba Island in Georgia. The companyis seeking to reactivate the facilities, which have been dormantsince the early 1980s.

Southern LNG Inc. last week launched a scathing denial of theallegations that it conducted an open season in secret in order toaward to an affiliate all the teminalling capacity in its liquefiednatural gas (LNG) facilities on Elba Island in Georgia. The companyis seeking to reactivate the facilities, which have been dormantsince the early 1980s.

For the second week in a row, Pacific Gas & Electricdeclared an unusual weekday low-inventory OFO. The order, effectivetoday, carries $1/dth penalties for negative imbalances exceeding10%.

Pacific Gas & Electric issued a systemwide high-inventoryOFO effective today. The order carries penalties of $1/Dth forpositive imbalances exceeding a tolerance of 11%. The utilityprojected that high linepack (200 MMcf greater than target) wouldlast through Sunday.

Northern Natural Gas extended a System Underrun Limitation orderfor all market-area zones through Monday. The SUL was initiatedTuesday to guard against excessive linepack (see Daily GPI, June 30).

The U.S. Court of Appeals for the 10th District has reversed andremanded an order in which FERC asserted jurisdiction over two KNWattenberg Transmission laterals that provide connecting servicefrom Colorado Interstate Gas to two food-processing plants in FortMorgan, CO., thus bypassing the municipal gas provider.

Recent declines in natural gas bills would have been evengreater if it hadn’t been for one-time LDC restructuring charges,according to a Gas Research Institute study. Still LDCs have cutnon-gas costs substantially.

Peoples Energy said it was “extremely disappointed” in orders byIllinois Commerce Commission (ICC) that would sharply reduce thegas rates the LDC and affiliate North Shore Gas could charge theircustomers under fixed-price plans filed last fall. The utilitiessaid they cannot accept the ICC rulings and informed the agencythat they will remain instead under their existing pricingstructure.