Reducing

Pacific Gas and Electric Co. attorneys expect to file a proposedsettlement with state regulators today for reducing imbalances andOFOs on its transmission pipeline system in northern California. Atleast 10 parties have signed in support of the proposed changes,including statewide consumer advocate The Utility Reform Network(TURN), the City of Palo Alto municipal electric utility andmerchant underground natural gas storage operator Wild GooseStorage.

CMS Panhandle Eastern plans its Waverly Piping Inspection tobegin Friday and last seven days, reducing capacity by 60 MMcf/d.The project reduces capacity on Panhandle’s 100 line between Havenand Glenarm but will affect only physical receipts between Havenand Glenarm into the 100 lines.

The Amoco processing plant serving Destin Pipeline is havingproblems with its liquids handling facility, reducing the handlingcapacity by 50% as of Monday, according to the Destin bulletinboard. Amoco estimates the reduction will last about a month. Thereis enough remaining capacity to process current daily liquidsvolumes, according to Destin, but if those volumes increase beyondAmoco’s capabilities the pipeline “could be forced to take furtheraction should the quality of the gas not meet market requirements.”

The Environmental Protection Agency’s final plan for reducingsmog-causing emissions of nitrogen oxides (NOx) in 22 easternstates and the District of Columbia should create an additional 1Tcf of gas demand by 2003, said Bruce Craig of the Natural GasSupply Association.

Natural gas should be a big winner as a result of theEnvironmental Protection Agency’s final plan for reducingsmog-causing emissions of nitrogen oxides (NOx) that was releasedyesterday. The plan calls for a reduction of 1.1 million tonsannually, or 28%, in 22 eastern states and District of Columbia by2007. States clean air plans come due in September 1999 and neededcontrols must be in place by 2003.

KN Energy will be reducing its new combined work force by a total of 750 positions or 18% as the result of the integration of its operations with that of newly-acquired MidCon Corp., the company acknowledged Wednesday.