Provision

PG&E Energy Trading Canada Corp. has made a deal with BC Gasfor capacity on the BC Gas Southern Crossing Pipeline project andfor provision of peaking services to BC Gas, pending regulatoryapprovals. BC Gas last week re-filed for construction of theSouthern Crossing Pipeline, a loop of existing pipeline linked tothe north-south Westcoast Energy pipeline connecting to BritishColumbia and the U.S. Pacific Northwest. The pipeline to linkAlberta gas to the Huntingdon, BC, market area is scheduled tobegin operation Nov. 1, 2000.

An appropriations measure approved by Congress last weekcontains a key provision that would set aside funding for the WhiteHouse Council on Environmental Quality (CEQ) to coordinateinteragency permitting of pipeline projects, paving the way forquicker certification in the end.

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.