Regulatory

The Senate last week confirmed Commissioner Curt Hebert Jr. to anew five-year term on the Federal Energy Regulatory Commission. Histerm expires in June 2004.

The Senate last week confirmed Commissioner Curt Hebert Jr. to anew five-year term on the Federal Energy Regulatory Commission. Histerm expires in June 2004.

Mexico’s energy regulatory commission (CRE) has defined a newgas distribution geographic zone and put out a call for bids fordevelopment of a distribution system expected to cost about $35million. The system will serve the region of North Bajio includingmunicipalities Aguascalientes-Jesus Maria-San Francisco de losRomo, Aguascalientes; San Luis Potosi-Soledad de Graciano Sanchez,San Luis Potosi; and Zacatecas-Guadalupe, Fresnillo, Calera andMorelos, Zacatecas.

Mexico’s energy regulatory commission (CRE) defined the gasdistribution geographic zone of North Bajio to includemunicipalities Aguascalientes-Jesus Maria-San Francisco de losRomo, Aguascalientes; San Luis Potosi-Soledad de Graciano Sanchez,San Luis Potosi; and Zacatecas-Guadalupe, Fresnillo, Calera andMorelos, Zacatecas. About $35 million will be needed to develop thedistribution network, the CRE said. Belgian company Tractebel issaid to be interested in developing the distribution system. Theregion has more than 1.6 million residents and 342,000 homes 86% ofwhich are equipped with running water and liquefied propane gasinstallations. The homes consume about 16.2 MMcf/d of propane.

AmerGen Energy Co. agreed to buy Illinois Power Co.’s Clinton(IL) Power Station pending regulatory approval. The agreement tosell the nuclear station moves Illinois Power parent Illinova Corp.closer to meeting a condition of its recently announced merger withDynegy Inc.

A decision on the remanded Sea Robin Pipeline case anddiscussion of policy changes in the way the Federal EnergyRegulatory Commission regulates offshore pipelines both are on theagenda for Wednesday’s open meeting, but no one will be surprisedif they’re a no-show once again.

A decision on the remanded Sea Robin Pipeline case anddiscussion of policy changes in the way the Federal EnergyRegulatory Commission regulates offshore pipelines both are on theagenda for Wednesday’s open meeting, but no one will be surprisedif they’re a no-show once again.

Midcoast Energy Resources said Midcoast del Bajio has beenawarded a permit by the Mexican Energy Regulatory Commission tobuild a 59-mile, 16-inch diameter gas pipeline in the Bajio regionin the state of Guanajuato in central Mexico. The line will runfrom an interconnection with a Pemex near Valtierrilla to Leon andwill provide gas transportation services to parts of central Mexicothat currently do not have access to gas. Midcoast del Bajio willhold an open season from July 16 to July 26 for firm transportationcapacity on the proposed pipeline. And a series of informationalmeetings will be held jointly with Pemex to answer questions frompotential transportation customers and other interested parties.The meetings will be held on June 24 in Irapuato, Guanajuato at theHotel Parador del Rio and on June 25 in Leon, Guanajuato at theFiesta Americana Hotel.

In a key move last week, the Federal Energy RegulatoryCommission endorsed an innovative hourly firm transportation (HFT)service that will enable a gas pipeline to quickly respond to thepeaking needs of power generators. With this action, Reliant EnergyGas Transmission – which proposed the service – becomes the firstpipe to move away from the traditional daily and monthlytransportation markets.