Questions

Many utilities are unprepared to handled the challenge ofcompetitive markets because their internal organizations have beenneglected, says a recent report.

Many utilities are unprepared to handled the challenge ofcompetitive markets because their internal organizations have beenneglected, says a recent report.

Another round of discussions — and potentially hearings oreven court cases — is on the horizon for the new branch of thenatural gas industry in Atlantic Canada, after regional natives wona legal ruling that they need to be consulted more.

Petal Gas Storage Co., a wholly-owned subsidiary of Crystal GasStorage Inc., filed its second application with FERC to add 3.6 Bcfof storage capacity to its Nos. 6 and 7 salt caverns in ForrestCounty, MS, last week. The first application, filed in July, wasdenied by FERC because it lacked detail.

Commissioners Linda K. Breathitt and Vicky A. Bailey this weekjoined the club of those confused about when, if ever, FERC mightsettle the huge number of gas issues that have been on its platefor more than a year. Early in the week, Breathitt indicated itwould take up to six more months, while Bailey said yesterday theCommission would be delivering a package of gas decisions byChristmas.

A top-ranking FERC official last week dismissed suggestions thatthe Commission was dragging its feet on key pipeline projects thatwould ship natural gas to the Northeast – namely the proposedMillennium, SupplyLink, MarketLink and Independence lines. “…[W]elove new pipelines,” said Richard O’Neill, director of the Officeof Economic Policy, “but we don’t want these new pipelines to turninto stranded costs.” Also, he cited environmental concerns.

A top FERC official dismissed any hint the Commission wasdragging its feet on key pipeline projects that would ship naturalgas to the Northeast – namely the proposed Millennium, SupplyLink,MarketLink and Independence lines. “…[W]e love new pipelines,”said Richard O’Neill, director of the Office of Economic Policy,”but we don’t want these new pipelines to turn into strandedcosts.” Also, he cited environmental concerns.

Giving pipelines the presumption in favor of rolled-in rates mayhave been a good idea a couple of years ago, but CommissionerWilliam Massey says he’s now beginning to have second thoughtsabout that decision.

The U.S. Environmental Protection Agency has found some missingelements in the draft environmental impact statement (DEIS)prepared by the Federal Energy Regulatory Commission on theAlliance Pipeline project which is in competition with Voyaguer tocarry western Canadian supplies to the Chicago area.