MichCon announced plans yesterday to give all of its 1.2 millionretail gas customers a choice of suppliers over the next threeyears. The Detroit-based distributor filed an application with theMichigan Public Service Commission for the program earlier thisweek. It is designed to begin next January with 225,000 customers.The plan also would reduce gas costs by 7% to $2.95/Mcf and freezethem for three years for those customers who continue to useMichCon as their gas provider.
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NGC’s Capacity Posting Described as ‘Hollow’ Gesture
Natural Gas Clearinghouse’s (NGC) decision earlier this month topost 40% of its San Juan-to-California capacity on El Paso NaturalGas for release appeared “at first blush” to be a “magnanimousgesture” on the marketer’s part, but it was far from that, said anenergy consultant.
MAPCO Deal Hits Williams’ Earnings
The Williams Companies reported first-quarter 1998 results werereduced primarily by costs related to its MAPCO acquisition,unfavorable conditions in some energy market sectors and continuedinvestment in the company’s communications business.
Duke Growing Pipe Presence in TX, LA
Duke Energy Field Services further expanded its South Texasgathering and processing assets with the acquisition of theBrooks-Hidalgo Pipeline System from subsidiaries of Aquila Energyand Mitchell Energy effective April 1.
Protests of El Paso-NGC Agreement All ‘Smoke,’ NGC Says
Many of the “incendiary” allegations arising from Natural GasClearinghouse’s (NGC) acquisition of 1.3 Bcf/d of firmtransportation capacity from El Paso Natural Gas – that thecontracted amount far exceeded NGC’s market needs, that NGC hasacquired monopoly control over pipeline capacity into California,that California border prices have shot up as a result, and thatthe contracts contain a “covenant” whereby NGC and El Paso haveagreed not to compete – have generated a lot of smoke, but no realfire, the Houston-based gas marketer says.
Glynn Sees PG&E Trimming Assets
Without giving specifics, the CEO of PG&E Corp.confirmedhe is looking to sell some of its recently acquiredmulti-billion-dollar gas and electric assets in the U.S. andAustralia later this year.
More Gas-Fired Power for New England
Stone & Webster Development and PP&L Global Inc. haveformed a joint venture to build a 250-500 MW gas-fired, merchantpower plant in Wallingford, CT to compete in the New Englandelectricity market. The partners have a signed “exclusivityagreement” with the city government of Wallingford to develop theproject on the site of a small oil-fired power plant theWallingford Department of Public Utilities (DPU) is retiring.
Edison Buys Options on 740 Bcf to Hedge Power Sales
In a move that could be replicated as other states open theirelectric markets, Southern California Edison, the nation’s secondlargest electric utility, has purchased options on 740 Bcf offuture natural gas supplies for an undisclosed price as a means ofhedging against what is expected to be a highly volatile wholesaleprice for electricity in California’s newly established mandatorywholesale spot market, called the Power Exchange (PX).
Washington Gas Expands Customer Choice
Washington Gas is expanding its customer choice program inMaryland, targeting 100,000 residential customers or one-third ofthe total, and all of its 25,000 commercial customers in the state.The company said it received approval for the expansion from theMaryland Public Service Commission.
Northwest Natural, NESI combine Canadian E&P
Northwest Natural Gas and NIPSCO subsidiary NI Energy Services(NESI) have combined Canadian exploration and productionsubsidiaries into one company, Canor Energy Ltd., to “ramp upgrowth prospects and increase competitiveness.” NW combinedsubsidiary Canor Energy with NESI’s Southlake Energy March 31through the purchase of Southlake’s stock in exchange for shares inCanor. The new Canor is 66% owned by NW Natural and 34% owned byNESI. The combined company has a production volume approaching4,000 boe/d. Natural gas equivalent reserves total more than 120Bcf.