In the event of a Y2K-related disruption, Transcontinental GasPipe Line said any imbalances that are incurred on advancenominations by shippers during the first seven days of the New Yearwill be exempt from cashout penalties.
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Transco: No Penalties if There’s a Y2K Disruption
In the event of a Y2K-related problem, Transcontinental Gas PipeLine said that any imbalances that are incurred on advancenominations by shippers will be exempted from the monthly cashoutpenalty calculation.
Transportation Notes
Sonat lifted two forces majeure Friday. One was related to thecompletion of valve maintenance at the Dalton (GA) #2 delivery point(see Daily GPI, Oct. 15) that had begunThursday; the other had begun Oct. 3 in conjunction with a shut-intest and engine maintenance at the Bear Creek (LA) Storage Facility.
Transportation Notes
During Sept. 7-11 maintenance on its Topock (AZ) Lateral andrelated facilities, Transwestern expects no flows to either SoCalGas or PG&E at their Topock interconnects. However, thepipeline said it is investigating “limited alternative deliveryarrangements” for the two points. It will be able to schedule up to300,000 MMBtu/d at Mojave Pipeline’s Topock interconnect.
KN Marketing Signs Gas Management Deal
Continuing a flurry of activity since its proposed merger withSempra Energy fell through (See related story), KN Energy was at itagain Friday as its marketing affiliate, KN Marketing, announced itwas selected to provide gas and fuel management services to a 600MW power plant in Elwood, IL. KN will supply 10 Bcf/year to thisplant at an undisclosed price. The Colorado-based company will alsomanage the plant’s fuel service, including supplying, balancing andmanaging storage and transportation.
Small Southwest Rises Contrast With Mild Softness
Except for small upticks in San Juan Basin and related pointspartially due to an unexpected compressor station outage (seeTransportation Notes), the cash market again was mildly softerMonday. Much like last week, a screen decline of about a nickelprovided about the only influence meaningful to cash traders. Evensome cool weather returning to the Midwest failed to keep Chicagoand Michigan citygates from dropping 2-3 cents, while Midcontinentfield numbers were mostly flat.
Sempra Inks Energy Deal with Auto Parts Firm
Offering to manage energy and related infrastructure services,Sempra Energy’s energy services provider has inked a deal with oneof the nation’s largest auto parts retail chains. Under the dealSempra Energy Solutions will provide energy information and billingmanagement services for 718 retail outlets in 37 states.
Maryland Passes Electric Choice Legislation
Maryland Gov. Parris Glendening signed an electric restructuringbill and related tax measures into law last Thursday less than aweek after the Maryland General Assembly passed the legislation.The new law will phase in residential customer choice over athree-year period beginning with one-third of residential customersJuly 1, 2000. Residential customers choosing to keep their utilityas supplier would get rate cuts of 3% to 7.5% to be determined bythe Public Service Commission. The rate cuts would last four yearsand then rates would be deregulated.
Industry Briefs
Maryland Governor Parris N. Glendening signed into law electricderegulation legislation and related tax bills. The legislationenables the Maryland Public Service Commission (PSC) to moveforward on the details of how the state’s power industry will bederegulated. “I am pleased that the legislature responded to myproposal to include a mandated rate reduction for Marylandresidential homeowners in the bill to protect consumers fromunintended rate increases,” Glendening said in an earlier statementregarding the bill. “Frankly, I wish the reduction was more than3%. I also wish that stronger environmental provisions had beenincluded. The General Assembly has strongly indicated, however,that they believe this proposal is the best that can beaccomplished, and this bill is too important for Maryland’s futureto hold up further.” The law will phase in residential customerchoice over a three-year period beginning with one-third ofresidential customers July 1, 2000. Residential customers choosingto keep their utility as supplier would get rate cuts between 3%and 7.5% to be determined by the PSC. The rate cuts would last fouryears and then rates would be deregulated. Six utilities serveMaryland, including Allegheny Power, Baltimore Gas and Electric,Conectiv, Potomac Electric Power, Choptank Electric Cooperative,and Southern Maryland Electric Cooperative.
Destin Seeking Cost Waiver at FERC
Destin Pipeline Co. filed at FERC last week to have costlimitations on its “CNG Lateral” waived in light of delays thatpushed the project’s cost to $35.1 million, well above $19.6million allowed for in the Commission’s certification of theproject last year (Docket No. CP98-238).