Rejected

FERC last week rejected Koch Gateway Pipeline’s proposed tariffrevision that would have required its shippers to obtain itsapproval before nominating out of balance. Koch sought the changeto remedy imbalances on its system, but the Commission said itcouldn’t approve it “absent clear evidence” of “real operationalproblems.”

FERC last week rejected Koch Gateway Pipeline’s proposed tariffrevision that would have required its shippers to obtain itsapproval before nominating out of balance. Koch sought the changeto remedy imbalances on its system, but the Commission said itcouldn’t approve it “absent clear evidence” of “real operationalproblems.”

In what appeared to be an unremarkable decision, FERC this weekrejected a proposal that would have allowed Transwestern Pipelineto negotiate and share in the revenues that shippers would receivefor releasing capacity on its system. But the ruling piqued theinterest of some, especially shippers that were caught in acapacity squeeze when Dynegy Inc. contracted for much of thecapacity on El Paso Natural Gas.

As many analysts and observers expected, Columbia Energy Group’sboard swiftly rejected NiSource’s $5.7 billion, $68/share, purchaseoffer last week on the advice of management, legal counsel and afinancial team at Salomon Smith Barney. But NiSource officials saidthey were “undeterred” by the decision and would move forward ondiscussions with Columbia’s shareholders.

FERC last week upheld an administrative law judge’s partialinitial decision denying KN Interstate Gas’s (KNI) request to rollin the costs associated with the construction of its Pony ExpressLine and Kansas City Line.

FERC yesterday upheld an administrative law judge’s partialinitial decision denying KN Interstate Gas’ (KNI) request to rollin the costs associated with the construction of its Pony ExpressLine and Kansas City Line.

FERC last week rejected a proposed service agreement in whichColumbia Gulf Transmission tried to push the envelope too far bynegotiating terms and conditions of service with one of itscustomers, Entergy Louisiana Inc. (ELI)

The Supreme Court last Tuesday rejected a petition for writ ofcertiorari filed by the California Public Utilities Commission(CPUC) and Southern California Gas (SoCalGas) after the partiesfailed to meet the deadline. The petitioners, which filed forreview on Nov. 5, missed the deadline by three days. The CPUC andSoCalGas had asked the high court to review a 1996 FERC decision -upheld by the D.C. Circuit Court of Appeals two years later – thatthey claimed amounted to a “power grab” of California’sjurisdiction by the federal agency.

FERC yesterday flatly rejected a request by two Enron affiliatesfor a limited waiver of the capacity-release regulations and the”shipper must have title” policy that would enable them to transfertitle to gas being shipped on five New York State-bound pipelinesbefore the gas actually hits the market.