Regulated

Inergy, L.P.on Wednesday announced that its regulated subsidiary, Central New York Oil and Gas Company, LLC (CNYOG), inked a deal to purchase from Tennessee Gas Pipeline a 24-mile lateral pipeline connecting Inergy’s Stagecoach natural gas storage facility to Tennessee’s Line 300.

Atlas Pipeline Partners LP said Southwestern Energy signed a new three-year firm transportation contract for 175,000 Dth/d of capacity on Atlas’ FERC-regulated Ozark Gas Transmission system to support growing Fayetteville Shale production in north central Arkansas.

FERC Monday gave Southern Star Central Gas Pipeline the green light to sell part of its regulated natural gas pipeline system in Oklahoma to unaffiliated gatherer Keystone Gas Corp. for an estimated $250,000. Following the sale, the pipe facilities would become nonjurisdictional gathering.

The Federal Energy Regulatory Commission gave regulated energy companies in the Gulf of Mexico and Gulf Coast region a little breathing room by extending any deadlines to Sept. 30 for companies affected by the hurricane who are participating in proceedings at the Commission and need an extension. FERC also is allowing companies to delay until Sept. 30 compliance with certain standards of conduct regulations, particularly reporting on each emergency that resulted in a deviation from the standards of conduct. Regulations usually require reporting of such incidents within 24 hours.

FERC on Tuesday affirmed an April ruling that found part of Transcontinental Gas Pipe Line’s offshore and onshore facilities in Louisiana to be regulated transmission and ineligible to be spun down to affiliate Williams Gas Processing-Gulf Coast Co. (WGP). The agency, in a separate order, also upheld an initial finding of jurisdictional transmission for the facilities of Jupiter Energy Corp.

Energy giant Duke Energy Corp. announced Monday that it has entered into a definitive agreement to acquire Cincinnati, OH-based Cinergy Corp. for $9 billion in stock, creating a formidable utility company with 5.4 million natural gas and electric customers. Company officials also hinted the future might see Duke splitting off its natural gas assets and going forward as a pure electric play.

Questar Corp. wasn’t too happy about Standard & Poor’s (S&P) decision to downgrade the debt ratings of its regulated subsidiaries, Questar Gas Company and Questar Pipeline, to “A-” and its commercial paper to “A-2.” S&P affirmed the BBB+ long-term rating of Questar Market Resources and assigned a stable outlook for each Questar entity. “Our credit ratings remain strong, and we’ll keep them strong,” said CEO Keith O. Rattie. “No specific event triggered this action. In fact, our credit metrics today are stronger than at any time in the company’s history, so we don’t expect this action to have a material impact on our borrowing costs or access to credit markets.” S&P said that Questar’s growing exploration and production (E&P) business benefits Questar Gas and Questar Pipeline when commodity prices are high, but exposes them to greater risk when prices are low. “S&P also cited a negative shift in Utah’s regulatory environment as a factor in its decision to downgrade the credit ratings of Questar Gas. But more importantly, S&P affirmed a BBB+ rating for Market Resources, our E&P business and Questar’s primary growth driver,” Rattie added.

Enbridge Gas Distribution — the regulated utility subsidiary of Enbridge Inc. — said Thursday that it has received approval from the Ontario Energy Board to lower its natural gas rates for Ontario customers effective April 1.

MarkWest Energy Partners L.P. said it will pay Enterprise Products Partners $42.1 million for a 50% non-operating stake in Starfish Pipeline Co., which owns the FERC regulated Stingray natural gas pipeline, the unregulated Triton natural gas gathering system and the West Cameron dehydration facility, all located in the Gulf of Mexico or onshore in southwestern Louisiana.