Recovery

The Nevada Public Utilities Commission will hold consumer hearings Tuesday and Wednesday on the gas cost recovery case of Southwest Gas Corp., which has asked to raise its rates overall by $41.6 million to cover deferred costs of wholesale fuel supplies as of last March 31. The Las Vegas-based gas-only utility proposed to begin collecting the higher rates Nov. 1.

In another sign PG&E has fully cleared its post-Chapter 11 bankruptcy, utility officials lowered the amount of the energy recovery bonds that will be sold later this year by more than $300 million, meaning they will total about $800 million rather than the previously estimated $1.1 billion. A series of settlements of suppliers’ outstanding claims against the utility has permitted the reduction.

In a significant recovery from having 600 MMcf/d of capacity on Northern Border Pipeline unsold during April, Northern Border Partners LP said Thursday that the pipeline was sold out during July and August and the partnership is reiterating guidance for the year. It expects second quarter net income of $26-28 million, or $0.50 to $0.55 per unit, compared to analysts’ expectations of 48 cents.

Elizabethtown Gas, a unit of AGL Resources Inc., last week petitioned New Jersey regulators to establish a Pipeline Replacement Program (PRP) Recovery Rider allowing it to collect costs from customers for the accelerated replacement of about 88 miles of elevated pressure 8- to 12-inch cast iron main on its distribution system.

Elizabethtown Gas, a unit of AGL Resources Inc., on Tuesday petitioned New Jersey regulators to establish a Pipeline Replacement Program (PRP) Recovery Rider allowing it to collect costs from customers for the accelerated replacement of about 88 miles of elevated pressure 8- to 12-inch cast iron main on its distribution system.

GulfWest Energy Inc. has entered into a joint venture with Allen Drilling Acquisition Co. (ADAC), a subsidiary of Advanced Energy Recovery Inc., a midstream natural gas and production company located in Mission, KS. The joint venture, incorporated as Elgin Holdings LLC, was formed to activate a currently inactive gas gathering system in Hardin County, TX and to develop deep rights for natural gas on non-producing acreage in Madison County, TX. In forming the joint venture, GulfWest agreed to contribute its deep rights on the non-producing acreage and its ownership of the inactive gas gathering system, and ADAC committed to provide the initial capital funding to Elgin for the projects. GulfWest holds a 47.5% interest in Elgin and will act as the operating partner of Elgin Holdings. The pipeline in Hardin County is being prepared to be operational by the end of December.

GulfWest Energy Inc. has entered into a joint venture with Allen Drilling Acquisition Co. (ADAC), a subsidiary of Advanced Energy Recovery Inc., a midstream natural gas and production company located in Mission, KS. The joint venture, incorporated as Elgin Holdings LLC, was formed to activate a currently inactive gas gathering system in Hardin County, TX and to develop deep rights for natural gas on non-producing acreage in Madison County, TX. In forming the joint venture, GulfWest agreed to contribute its deep rights on the non-producing acreage and its ownership of the inactive gas gathering system, and ADAC committed to provide the initial capital funding to Elgin for the projects. GulfWest holds a 47.5% interest in Elgin and will act as the operating partner of Elgin Holdings. The pipeline in Hardin County is being prepared to be operational by the end of December.

In a strong signal that The Williams Cos. is on track for recovery, Moody’s Investors Service on Friday placed the Tulsa-based company’s junk-rated debt under review for possible upgrade. Even before the review, however, Moody’s upgraded Williams’ speculative grade liquidity rating to ‘SGL-2’ from ‘SGL-3,’ which “indicates our expectation of good liquidity for the 12 months ending June 30, 2005.”

The swing market achieved a fairly substantial recovery Monday from weekend softness. Advances ranged from about a nickel at a couple of South Texas points to more than 30 cents in the Southwest basins. Most were in double digits between a dime and a quarter.