Proposing

Kinder Morgan Inc. (KMI) is proposing to expand the capacity of its Oil Springs natural gas storage facility in eastern Carbon County, WY to 10 Bcf/year, which would allow cycling capability to third-party shippers, the company said Friday.

Mexico’s reform-minded President Vicente Fox is proposing to open up the country’s state-controlled electricity sector to more private investment. The measure seeks to revise two constitutional amendments to allow private companies to invest in new generation.

FERC this week will put some meat on the bones of an electric order it issued late last year proposing to revise all existing market-based rate tariffs and authorizations in order to prohibit anti-competitive behavior or the exercise of market power, FERC Chairman Pat Wood told reporters last Wednesday after appearing at a breakfast meeting sponsored by the Electric Power Supply Association (EPSA). The order has come under criticism from some quarters as being ambiguous and placing an open-ended refund condition on sellers of power.

Natural Gas Pipeline Company of America (NGPL) is proposing an expansion and extension of its existing system in northeastern Illinois to serve a planned new electric power plant, which will be constructed to meet a spring, 2003 in-service date. An open season started April 13 and will close at 5 p.m. CT on Friday, April 27. Natural proposes to expand the capacity of its Volo lateral (starting at Compressor Station 113), North Chicago, and Moraine Lateral by 75,000 Dth/d with the addition of compression. Also, a new eleven-mile, 20-inch lateral with a design capacity of 75,000 Dth/d would be built east from the Moraine Lateral to the site of a planned 550 MW electric power plant in the city of Waukegan, IL. Shippers must return an executed precedent agreement for a minimum of 16 years. Natural has proposed a negotiated rate including a fixed reservation charge of$4.5626 per Dth of contract maximum daily quantity, a maximum commodity rate for an Iowa-Illinois receipt to a Market zone delivery, which is currently $0.0021 per Dth in the peak period and $0.0005 during the off-peak period, plus a tariff fuel rate for an Iowa-Illinois to Market Zone delivery (currently 1.81%). For further information contact David E. Oros at (630) 691-3196.

Ohio is in the process of developing a special bipartisancommittee comprised of House and Senate members to examine highnatural gas prices.

Despite recently proposing a massive $15 billion merger ofequals between Commonwealth Edison parent Unicom and Peco Energy,Unicom CEO John W. Rowe still has an appetite for growth. Hebelieves the combined company would need to get bigger in certainareas to remain competitive.

Despite recently proposing a massive $15 billion merger ofequals between Commonwealth Edison parent Unicom and Peco Energy,Unicom CEO John W. Rowe still has an appetite for growth. Hebelieves the combined company still needs to get bigger in certainareas to remain competitive.

Oklahoma’s Republican Sen. Don Nickles has introduced a wholenew approach to the electric restructuring debate, proposing a billthat would strip states of their authority to grant franchises toutilities and open local markets to competition.

A House bill proposing a nationwide royalty in-kind (RIK) schemefor collecting royalties on oil and natural gas produced on federallands would result in a net revenue loss of $141 million to $367million to the federal government during the first 8 1/2 years ofits implementation.