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While the real price of other goods and services in the U.S.increased by 34% since 1987, the price of natural gas to consumershas decreased by an average 14%, from 1987 to 1997, according to areport used by the American Gas Association to show FERC thatretail unbundling is working. The distributors’ group told afederal/state regulatory policy conference Thursday the price toconsumers went from an average $4.47/Mcf in 1987 to $3.85 in 1997(all in 1997 $). Of that delivered price the total transportationand distribution cost to consumers went from $2.23 to $1.53, a 31%decline, AGA said, citing surveys by the Energy InformationAdministration. During the same period the wellhead price wentfrom $2.24 (in 1997 $) to $2.32 in 1997.

Most of Monday’s late-February market resembled the rest of themonth: a little up here, a little down there, and a lot of flatnumbers in between. Once again the exception was in Northeastcitygates, which went as high as the $2.50s in some instances.

Enterprise Products Partners LP of Houston subsidiary EnterpriseProducts Operating LP and five other energy companies have agreedon the ownership and operating terms of Tri-States NGL PipelineLLC.

Western Gas Resources has joined the Fort Union Gas GatheringPartnership formed to deliver 450 MMcf/d or more of coal-bedmethane from the Powder River Basin by the end of next year.

Like an irate mother ordering her child to come inside while theother children play, the Georgia Public Service Commissionunanimously voted Tuesday to order a full hearing into Atlanta GasLight’s (AGL) rate charging operations. The hearings will beginFeb.3 and a decision is expected by Feb. 9. The vote took placeduring a regular session of the commission.

The four major gas trade associations that make up the NaturalGas Council (NGC) and two other industry trade groups were expectedto ask FERC late Monday for a second extension of the deadline forindustry comments on the major notice of proposed rulemaking (NOPR)and notice of inquiry (NOI) issued in July, industry sources said[RM98-10, RM98-12].

Unocal Corp., like most other producers struggling againstdepressed oil and gas prices, said Wednesday it expects to cutcapital spending by 30 to 40% in 1999 from this year’s level. Inaddition, the company is targeting cash expense reductions of $150million, of which about $100 million has already been identified.

In an attempt to deter other utilities in the state, Californiaregulators Nov. 5 slapped a $1.68 million fine on Pacific Gas andElectric Co. for allowing an unregulated energy services affiliateto violate newly created state rules earlier this year governingthe use of the parent company name and logo. The PG&ampE utilitycompany expressed disappointment and vowed to appeal the decision,which requires the penalty be paid out of shareholder funds.

Major producers, who usually have chemical and other businessesto shield them somewhat from weak commodity prices, obviously wereleft unprotected during the third quarter. They’re suffering underlow oil and gas prices right along side the independents.