Scaled

GRI, formerly the Gas Research Institute, filed itsfourth-to-last annual research, development and demonstrationprogram application last week with FERC, requesting a budget of $70million and approval of its 2001-2005 RD&D Plan.

The Federal Energy Regulatory Commission yesterday awarded ANRPipeline a certificate to build a scaled-back expansion of itsmainline system between the Joliet, IL, hub and the market areas insouthwestern Wisconsin.

With a relative whimper, not a bang, a major rate case forPacific Gas and Electric Co. ended last Thursday with Californiaregulators on a 3-2 vote giving the utility about one-third of whatit originally requested. The raise still is quite large, however,at $229 million/annually, including a 6% hike in gas rates. Thehike amounts to about another $20/year for the typical residentialcustomer. Electric rates were hiked by $136 million/year, but therewill be no change in those rates because of the ongoing rate freezethat’s been in effect since 1996 as part of the state’s electricindustry restructuring.

With a relative whimper, not a bang, a major rate case forPacific Gas and Electric Co. ended last Thursday with Californiaregulators on a 3-2 vote giving the utility about one-third what itoriginally requested. The raise still is quite large, however, at$229 million/annually, including a 6% hike in gas rates. The hikeamounts to about another $20/year for the typical residentialcustomer. Electric rates were hiked by $136 million/year, but therewill be no change in those rates because of the ongoing rate freezethat’s been in effect since 1996 as part of the state’s electricindustry restructuring.

Carolina Power and Light (CP&L) scaled back its plans toserve the budding electricity load in North Carolina yesterday byannouncing the replacement of its $175 million interstate PalmettoPipeline proposal with a $100 million 82-mile intrastate pipelineproject. The integrated energy company plans to build the new pipebetween Iredell and Richmond counties to serve an electric powerplant soon to be under construction. If CP&L gets its way, thenew pipe will be in service by the spring of 2001.

Tennessee Gas Pipeline filed a significantly scaled-down versionof its Eastern Express Project 2000 last week, reporting thateastern markets have been slow to develop and many New Englandpower generators believe it would be premature to sign long-termcontracts for firm gas transportation. The pipeline’s applicationwith FERC calls for the addition of only 168 MMcf/d of capacityalong the northernmost part of its system at a connection with theJoint Facilities of the PNGTS and Maritimes &amp Northeastpipelines.

Tennessee Gas Pipeline’s Eastern Express Project 2000 is a muchdifferent expansion today-mainly much smaller-as it arrives at FERCthan when it was announced more than a year ago. Last winter, thecompany said there was market interest in more than 4 Bcf/d of firmcapacity along nearly every stretch of its system, from the Gulf ofMexico north, from Chicago and Niagara east and from New Hampshiresouth. But Tennessee filed an application yesterday with FERC toadd only 168 MMcf/d of capacity along the northernmost part of itspipeline at connections with PNGTS and Maritimes.