Plan

Avista Corp. and PG&E Gas Transmission-Northwest (PG&EGT-NW) are inching closer to adding a new gas storage field in thestorage-poor Pacific Northwest region and have petitioned FERC foran exemption from Section 7 certificate requirements in order tofurther test the site.

A hotly protested Texas Gas Transmission rate proposal will besubject to increased regulatory and industry scrutiny in the comingmonths. The Federal Energy Regulatory Commission (FERC) sided witha number of protesters in accepting and suspending the bulk of theproposed tariff changes until Nov. 1 subject to hearing andpotential refund.

A hotly protested Texas Gas Transmission rate proposal will besubject to increased regulatory and industry scrutiny in the comingmonths. The Federal Energy Regulatory Commission (FERC) sided witha number of protesters in accepting and suspending the bulk of theproposed tariff changes until Nov. 1 subject to hearing andpotential refund. FERC also rejected Texas Gas’ postage stamp ratedesign for a new cutting-edge, short-term firm service and orderedthe pipeline come up with distance-based rates for the service. Inaddition, it ordered the pipeline to provide detailed explanationson a host of issues related to its new rate design within the next30 days.

The Federal Energy Regulatory Commission last week announcedfive “practical steps” that it will take this summer to “alleviatereliability stresses” on the electric transmission grid duringperiods of heightened demand. Commissioner Curt Hebert Jr.,however, cast doubts not only the effectiveness of the measures,but FERC’s motive for proposing them.

Shippers on Texas Gas Transmission Corp. have called on FERC toproceed cautiously with the pipeline’s proposed Section 4 generalrate filing that seeks to increase its total cost of service by19%, or $48 million, and boost annual rates for jurisdictionalpipeline and storage services by about $81 million.

ScottishPower announced a transition plan for PacifiCorpyesterday that includes a workforce reduction of 1,600 PacifiCorpemployees over the next five years. By 2004, PacifiCorp is expectedto deliver annual cost savings from 1998 levels of $300 million inoperating expenses and $250 million in capital expenditures.Employee reductions will occur from all areas of the businessacross the company’s six-state service area. ScottishPower is aleading international multi-utility company with a marketcapitalization of about $16 billion and 7.5 million customersacross the U.K., western U.S. and Australia. Its merger withPortland, OR-based PacifiCorp was completed in November 1999.PacifiCorp currently serves 1.5 million customers in Oregon, Utah,Wyoming, Idaho, Washington and California.

The Federal Energy Regulatory Commission last week endorsed acustomer-friendly interconnction plan by Commonwealth Edison,calling it “another critical step” toward getting new merchantpower plants on the transmission grid.

TransCanada PipeLines has taken the first steps in a bold planto divest $3 billion in assets in its Canadian midstream,international and refined products transportation businesses. Thecompany sold subsidiary NovaGas Canada LP’s Provost gas plant andgathering system to a subsidiary of Midcoast Energy Resources Inc.last week for an undisclosed sum and completed the sale of its PeshCreek processing complex and East Australia pipeline system earlierthis month. The total value of the two Canadian processing planttransactions comes to about $42 million.

TransCanada PipeLines has taken the first steps in a bold planto divest $3 billion in assets in the Canadian midstream,international and refined products transportation businesses. Thecompany sold subsidiary NovaGas Canada LP’s Provost gas plant andgathering system to a subsidiary of Midcoast Energy Resources Inc.yesterday for an undisclosed sum and completed the sale of its PeshCreek processing complex and East Australia pipeline system earlierthis month. The total value of the two Canadian processing planttransactions comes to about $42 million.