Protest

Kinder Morgan Interstate Gas Transmission (KMI) has attempted anend run around FERC’s Order 637, filing wide-ranging operationaland rate changes early under expedited tariff procedures to avoidthe more rigorous review in store for compliance filings, accordingto customer protests.

Major producers and utilities registered strong protests toTrunkline Gas Co.’s proposal to spin down a 720-mile portion of its26-inch diameter mainline, saying that while this action may be inthe pipeline’s best interest it’s not “in the public interest.”

Amoco Production, Amoco Energy Trading, Dynegy and Marathon Oilhave filed a protest at FERC charging Koch Gateway withdiscrimination and violation of affiliate rules. The four shipperssaid the pipeline and its affiliate, Koch Energy Trading (KET),have been speculating on price spreads between market points andthe Henry Hub using Koch’s gas parking and lending (PAL) service,and preventing other Koch shippers from taking advantage of thesame opportunities.

Amoco Production, Amoco Energy Trading, Dynegy and Marathon Oilhave filed a protest at FERC charging Koch Gateway withdiscrimination and violation of affiliate rules. The four shipperssaid the pipeline and its affiliate, Koch Energy Trading (KET),have been speculating on price spreads between market points andthe Henry Hub using Koch’s gas parking and lending (PAL) service.

ANR Pipeline unloaded an arsenal at the Guardian Pipelineproject yesterday in a protest and request for dismissal filed withFERC. If Guardian is built, it would be a bypass of ANR, resultingin 650 MDth/d of firm transportation capacity being turned back tothe Coastal subsidiary. That turnback capacity would mean a loss of$54 million in annual revenue, ANR said, of which $26 million couldbe avoided if Wisconsin Gas accepted a competing proposal presentedby ANR. ANR is requesting it be allowed to charge Wisconsin Gas anexit fee if Guardian is approved.

A showdown that was brewing between FERC and New Jersey Gov.Christine Todd Whitman over the hotly contested MarketLinkexpansion was suddenly aborted on Friday when Chairman JamesHoecker pulled the project from the agenda for Tuesday’spre-Thanksgiving meeting.

FERC last week gave Transcontinental Gas Pipe Line the go-aheadto build a $1.2 million lateral and associated facilities in NorthCarolina over the objections of state regulators, who argued thefacilities would constitute a bypass of a local distributioncompany.

California regulators and Pacific Gas and Electric (PG&E)earlier this week protested a letter agreement between El PasoNatural Gas and Dynegy Marketing and Trading, that they claim wouldgive the latter the “unilateral right” to keep a large portion ofthe Block II capacity on El Paso off the California market withoutbeing subject to recall rights.

A group of about 20 consumer activists, complaining of highcompensation for utility executives and excessive bail-out costs oftheir companies, attempted to disrupt the annual meeting of theEdison Electric Institute in Chicago Monday.