After a long, drawn-out regulatory process, Nipsco Industries(NI) finally completed its merger with Massachusetts-based BayState Gas Co., giving the Indiana-based holding company a powerfulEast Coast influence. The $780 million merger originally wasannounced in December 1997 and was expected to close before the endof 1998. Final documents were signed last Friday.
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CME Plans New Weather-Based Indexes
The Chicago Mercantile Exchange announced Thursday it has filedfor regulatory approval to offer exchange-traded, heating degreeday (HDD) and cooling degree day (CDD) futures and optionscontracts. The CME said these indexes will help companies manageweather-related financial risks. A start date will be set afterCommodity Futures Trading Commission (CFTC) approval.
Hebert, Breathitt Reflect On FERC Freshman Year
One of the most significant regulatory events at FERC in 1998went by practically unnoticed: the word “proposed” was put backinto the notice of proposed rulemaking (NOPR), said CommissionerCurt Hebert Jr. in reflecting on his first full year at the agency.Commissioner Linda K. Breathitt, who also just ended her initialyear, agreed “proposed” took on a “stronger meaning” in a specificNOPR last year, but she hardly found it to be precedent-setting.
Hebert, Breathitt See ’98 as Year of ‘Openness’
One of the most significant regulatory events at FERC in 1998went by practically unnoticed: the word “proposed” was put backinto the notice of proposed rulemaking (NOPR), said CommissionerCurt Hebert Jr. in reflecting on his first full year at the agency.Commissioner Linda K. Breathitt, who also just ended her initialyear, agreed “proposed” took on a “stronger meaning” in a specificNOPR last year, but she hardly found it to be precedent-setting.
Tractebel Awarded Mexican Distribution Permit
Mexico’s Energy Regulatory Commission (CRE) issued the Queretarogas distribution permit to Belgian electric utility Tractebel.Tractebel was awarded the permit as a result of the bid processundertaken by the CRE for the geographic zone, which comprises themetropolitan area of Queretaro, as well as the city of San Juan delRio.
Moler Joins Vinson & Elkins Energy Practice
Elizabeth Anne “Betsy” Moler, former deputy secretary of theU.S. Department of Energy and chair of the Federal EnergyRegulatory Commission,is leaving the public sector for privatepractice at a major law firm.
Third Remand Affects Penalty Revenue
In another case the Federal Energy Regulatory Commission isgoing to have to defend its policy of not requiring pipelines toflow through penalty revenues, the U.S. Court of Appeals ruledFriday in remanding a case involving NorAm Gas Transmission (No.97-1607). The 2-1 decision in Amoco v. FERC, with Judge Randolphconcurring in part and dissenting in part, did not object toNorAm’s raising penalty rates, but it does ask for an explanationof why the Commission believes penalty revenues will be soinsignificant as to warrant no consideration. In the year prior toNorAm’s rate filing the pipeline had collected $1.8 million inpenalty revenue. The court noted FERC appeared to believe thatbecause penalty rates were raised, the incidence of penalties woulddecrease. But “even if a lesser number of penalties are imposed,the increased penalty rate might result in a gross increase inpenalty revenue. Moreover – and this is the key imponderable -whether a shipper will be willing to incur the penalty depends onhis cost in securing alternative supplies in a tight market.”
FERC Warned Against Underestimating Pipe Monopolies
A regulatory expert last week called on FERC to impose amoratorium on awarding market-based rates for primarytransportation capacity due to the expected continued “monopoly”nature of major interstate pipelines.
Alliance Passes NEB’s Environmental Test
The Alliance Pipeline project crossed one of its last remainingregulatory hurdles on Friday when Canada’s National Energy Boardconcluded it is not likely to cause significant adverseenvironmental effects provided 41 environmental recommendations areimplemented.
Maritimes Lateral to Serve Generator
Maritimes & Northeast Pipeline recently filed an applicationwith the Federal Energy Regulatory Commission (FERC) to construct,own and operate a 1.1-mile, 12-inch diameter lateral pipeline toprovide gas service to the Maine Independence Station, currentlyunder construction in Veazie, ME. The Maine Independence Station isDuke Energy Power Services’ 520 MW gas-fueled generating station.