Possible

The nation’s largest gas distributor, Southern California Gas,last week signaled a possible future change in the way itscustomers access intrastate transmission during oral arguments atthe CPUC on future changes in California’s gas industry. Inaddition, for the first time, a number of the 19 major participantsin the state’s gas restructuring proceeding suggested a settlementprocess might be adopted to resolve some controversial issues.

The nation’s largest gas distributor, Southern California Gas,earlier this week signaled a possible future change in the way itscustomers access intrastate transmission during oral arguments atthe CPUC on future changes in California’s gas industry. Inaddition, for the first time, a number of the 19 major participantsin the state’s gas restructuring proceeding suggested a settlementprocess might be adopted to resolve some controversial issues.

A 30 Tcf market is “widely anticipated and economicallypossible” by 2010, but it will not be achieved easily as allsegments of the natural gas industry will face considerablefinancial and infrastructure challenges to help supply and servethat demand, said a study issued by the INGAA Foundation Inc. onMonday.

While in the longer term PacifiCorp’s merger partner has notruled out possible expansions into natural gas, water and eventelecommunications, ScottishPower PLC first plans to followPacifiCorp’s renewed focus on its vertically integrated electricitybusiness in the Western U.S. The $12.8 billion merger, includingdebt assumption, which was announced early last week, still mustpass U.S. state and federal regulators, along with Australianauthorities, however.

Only five of a possible 19 marketers are making deliveries toabout 16,000 out of 1.4 million customers of Atlanta Gas Light thismonth, but it’s a start in the LDC’s state-approved plan to workits way out of the regulated merchant business.

Four major gas associations last week urged FERC to reconsider”as soon as possible” an April rule requiring interstate pipelinesto conduct electronic communication using only electronic datainterchange (EDI) over the Internet by June 1, 1999.

The U.S. Justice Department has kicked off an investigation intoutility-owned ProLiance Energy LLC for possible antitrustviolations in the Midwest pipeline capacity market. The outcome ofthe probe, as well as a decision by an Indiana appellate court onrelated issues, may have ramifications for other utility-ownedmarketers, sources close to the case say.

Oklahoma-based Chesapeake Energy Corp. is exploring”alternatives to enhance shareholder value, including a possiblesale or merger of the company.” The word comes on the heels of anexpected $250 million second quarter loss stemming from awrite-down due to lower gas and oil prices. The company’s boardalso adopted a shareholder rights plan, or poison pill.

The Public Utility Commission of Ohio made it possible yesterdayfor 1.8 million retail gas customers in more than 64 Ohio countiesto begin choosing gas suppliers this winter. PUCO approved a hugeexpansion of Columbia Gas of Ohio’s pilot program and extended thepilots of Cincinnati Gas & Electric and East Ohio Gas.