Right

The issue of a matching term limit under the right-of-first-refusal (ROFR) process — something that has been a thorn in FERC’s side for many years — is back in front of the Commission again. This time, industrial gas customers have asked the agency to take a “fresh look” at the need for the matching term cap, and chided it for trying to “metaphorically throw up its hands and walk away” from the issue.

The issue of a matching term limit under the right-of-first-refusal (ROFR) process — something that has been a thorn in FERC’s side for many years — is back in front of the Commission again. This time, industrial gas customers have asked the agency to take a “fresh look” at the need for the matching term cap, and chided it for trying to “metaphorically throw up its hands and walk away” from the issue.

Growth in any industry is considered a good thing, right? In most cases, that’s true, but the rapid growth of service territories for many U.S. electric transmission and distribution (T&D) investor-owned utilities (IOU) has led to significant credit pressure because of the two-fold dilemma they sometimes face in adding new customers, according to a report from Standard & Poor’s Ratings Services (S&P).

In the first action of its kind, a Denver, CO-based marketer is challenging the right of an interstate natural gas pipeline to demand up-front payment of collateral equal to a full year of reservation charges from shippers that are perceived to be potential credit risks.

In the first action of its kind, a Denver, CO-based marketer is challenging the right of an interstate natural gas pipeline to demand up-front payment of collateral equal to a full year of reservation charges from shippers that are perceived to be potential credit risks.

FERC continued to smile upon natural gas pipeline projects right up until the very end of last week. Late Friday, the agency dismissed a plea by a Florida citizens advocacy group to stay Florida Gas Transmission’s (FGT) construction of a new compressor station as part of the pipeline’s Phase V expansion project in the state.

The Office of Pipeline Safety (OPS) has taken a number of “steps in the right direction” to improve its oversight of the safety of natural gas and hazardous liquids pipelines, but it still has a long way to go, a General Accounting Office (GAO) official told Congress last week.

Williams disclosed that its former telecommunications business, Williams Communications Group, intends to exercise a purchase right for certain assets for which Williams is guarantor. WCG expects Williams to pay for the fiber-optic network and associated facilities, pursuant to the guarantee, which was negotiated in September 1999, in return for unsecured debt or equity. Williams CEO Steve Malcolm said the action already was factored into earnings, balance sheet and liquidity numbers reported in filings and presented to investors during the past week. “In the event we need to perform on this obligation, we have developed more than sufficient financial capacity to do so,” he said. The issue involves credit support of $750 million for a lease agreement related to the communications assets. The expected closing date for the transaction is April 1. Williams Communications said the move will help preserve its flexibility to achieve a previously-announced comprehensive balance sheet restructuring. The proposed restructuring is intended to support uninterrupted business service and, at the same time, minimize any impact to customer and vendor relationships. Discussions with the company’s banks and others have been expanded to include multiple restructuring options, including the use of a negotiated Chapter 11 reorganization as a restructuring mechanism. The company may decide to pursue that alternative to allow for a more orderly process that maximizes enterprise value.

On the advice of counsel, former Enron Corp. Chairman Kenneth Lay will exercise his Fifth Amendment right not to testify before a Senate hearing today, his spokeswoman said Sunday. The Senate Commerce, Science and Transportation Committee subpoenaed Lay last week after he decided not to voluntarily testify before a subcommittee hearing investigating Enron’s bankruptcy.