TransCanada PipeLines has filed an application with the NationalEnergy Board (NEB) to build a 61-mile, 36-inch diameter pipelineacross Lake Erie. The line would provide the upstream supplyconnection for the proposed Millennium Pipeline project, whichwould extend to New York City.
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Articles from Pipelines
Income Off in First ‘New’ TransCanada Report
In its first report to shareholders since completion of itsmerger with Nova Corp., TransCanada PipeLines reported net incomefrom operations dropped to $139 million in the third quarter from$157 million in the third quarter of 1997, yielding net income pershare of 30 cents, down from 34 cents in the year-ago period.Revenues were up, however, to $4.43 billion from $3.91 billion.
Major Rate Design Change Proposed on Nova System
TransCanada PipeLines Ltd., subsidiary Nova Gas Transmission andtwo groups of Canadian producers yesterday announced a “watershed”proposed agreement for a new pricing structure aimed at increasingthe competitiveness of the Nova system while at the same timeensuring greater rate fairness for producer-customers on thepipeline.
El Paso Energy Grew Earnings 16%
El Paso Energy’s two pipelines combined lost $2 million, but thecompany still turned in improved earnings. Third quarter earningswere 43 cents/diluted share, an increase of 16% from 37 cents in Q31997.
Second Remand Affects Penalty Revenue
In another case the FERC is going to have to defend its policyof not requiring pipelines to flow through penalty revenues, theU.S. Court of Appeals ruled Friday in remanding a case involvingNorAm Gas Transmission (No. 97-1607). The 2-1 decision in Amoco v.FERC, with Judge Randolph concurring in part and dissenting inpart, did not object to NorAm’s raising penalty rates, but it doesask for an explanation of why the Commission believes penaltyrevenues will be so insignificant as to warrant no consideration.In the year prior to NorAm’s rate filing the pipeline had collected$1.8 million in penalty revenue. The court noted FERC appeared tobelieve that because penalty rates were raised, the incidence ofpenalties would decrease. But “even if a lesser number of penaltiesare imposed, the increased penalty rate might result in a grossincrease in penalty revenue. Moreover – and this is the keyimponderable – whether a shipper will be willing to incur thepenalty depends on his cost in securing alternative supplies in atight market.”
Gulf Pipelines Scramble to Serve Burgeoning Production
Three weeks of severe weather in the Gulf of Mexico have leftproducers with their heads spinning and have sent Gulf productionon a roller coaster ride, but producers should find some solace inthe large number of pipeline companies scrambling to serve theirgrowing transportation needs with new projects. In total, the newpipeline expansions announced last week could add more than 1 Bcf/dof additional pipeline access to markets for deep-water supplies.
FERC Approves Williams’ Park & Loan Service
The Federal Energy Regulatory Commission has conditionallyapproved a new interruptible park and loan service (PLS) to starttoday on Williams Gas Pipelines Central. The service – allowingcustomers to park or request a loan of gas at each of Williams’pools – was designed to give those customers greater flexibility ina market that has evolved from a monthly to a daily business. FERCapproved the service subject to refund and certain conditions.
Voyageur Sponsors Seek Clean Slate
In a change of strategy earlier this week, TransCanada PipeLinesLtd. and Nicor Inc. notified FERC that they were withdrawing theirapplication for their original Viking Voyageur pipeline project toclear the path for a new application on a scaled-down version ofthe project that they intend to file early this fall.
ANR Seeks Dismissal of Old Viking Voyageur Project
ANR Pipeline has called on FERC to dismiss TransCanadaPipeLines’s and Nicor’s Viking Voyageur Project application on fileat the Commission, a move that could prevent the two sponsors fromusing it as the basis for a proposal to build a radically alteredproject.
Open Season Set for New ‘Voyageur’ Project
TransCanada PipeLines Ltd. and Nicor Inc. yesterday took thefirst formal step towards making the substantially altered VikingVoyageur pipeline project a reality by scheduling an open seasonfor capacity.