Residential

Kinder Morgan Interstate Gas Transmission LLC received a FERC certificate allowing it to build a lateral that would provide distribution customers in Greeley, CO, with access to natural gas from competing pipelines. Kinder Morgan plans to construct a 41.4-mile Colorado Lateral that would begin at its existing facilities at the Rockport Compressor Station within the Cheyenne Hub and terminate in Greeley, where service would be provided to Atmos Energy Corp., a local distribution company (LDC). The project, which would deliver up to 55,000 Dth/d, has an estimated cost of $30 million. Atmos currently obtains all of its gas supplies for the Greeley area from the Public Service Company of Colorado (PSCo), an LDC that is a wholly owned subsidiary of Xcel Energy. In addition to receipts from Kinder Morgan’s Cheyenne Hub facilities, the proposed lateral would have the capability to receive natural gas from Wyoming Interstate Co., Colorado Interstate Gas Co. and Xcel Energy at sufficient pressures to meet contractual requirements, according to the FERC order. FERC rejected a request by PSCo to deny or delay approval of Kinder Morgan’s application [CP07-430].

Dominion Transmission, the pipeline subsidiary of Dominion Resources Inc., said it has cancelled plans to build the $497 million Greenbrier Pipeline that was intended to serve the industrial and residential gas needs in the Mid-Atlantic and Southeast regions, primarily Virginia and North Carolina.

Shell Energy Services Co. LLC, which provides natural gas service to residential and commercial customers in Georgia and Ohio, said Friday it will sell nearly all of its assets to MXEnergy Inc. for an undisclosed price. The sale is expected to close in mid-2006.

The Missouri Public Service Commission (PSC) has approved an agreement requiring Southern Missouri Gas Co., which serves about 7,250 residential, commercial and industrial customers in the state, to have a gas supply plan in place before next winter with 55% of its supply locked in under fixed prices or hedged against market exposure.

Christmas came early for industrials, utilities and residential natural gas customers this year as futures traders late last week pressured prices to levels not seen since late November. Central to the sell-off was end-of-year book squaring mixed with contract liquidation ahead of moderating temperatures that were expected to invade portions of the country over the weekend and this week. The January contract was the hardest hit by the selling, dropping 64 cents for the day and $1.35 for the week to close at $12.283.

As part of its monthly natural gas watch program, Pacific Gas and Electric Co. reported Thursday that retail gas utility rates for its residential customers will be about 25% higher this month compared with December 2004, and the average total gas bill for the month will be $110.55. While substantial, the amount of the hike is far less than the 40% to 70% increases that were predicted for this winter only a couple of months ago, the utility said.

Noting that prices are still at what it called record-high levels, Pacific Gas and Electric Co. said Thursday that residential natural gas utility customers can expect their monthly bills to be about $26.61 more in November than they were in the same month a year ago. The utility company said that is nearly a 50% hike (49.6%).

The Bush administration last week kicked off a national campaign aimed at helping U.S. residential consumers, businesses and the federal government conserve energy this winter in response to escalating prices for home heating fuels.

The Bush administration on Monday kicked off a national campaign aimed at helping U.S. residential consumers, businesses and the federal government conserve energy this winter in response to escalating prices for home heating fuels.