Serve

FERC has given the green light to Reliant Energy Gas Transmission to proceed with a 108,000 Dth/d compression expansion of Line J of its system to serve a new natural gas-fired power generation facility that is being built in Arkansas.

The Mid Atlantic Area Council (MAAC) expects to have sufficient generating capacity to serve the 2002 forecast summer peak demand, the regional reliability council recently said in its 2002 summer pre-seasonal assessment. MAAC is forecasting a summer net peak demand of 52,569 MW.

The Federal Energy Regulatory Commission on Wednesday approved an expansion of Columbia Gas Transmission Corp.’s pipeline to provide 125,000 Dth/d of additional capacity for a new power plant at the Pennsylvania-Delaware border.

Piedmont Natural Gas is planning to build a new pipeline to deliver gas supplies to Duke Power’s Mill Creek gas turbine electric generation facility, which is scheduled to go into service by June 2003. The peaking plant will use eight simple cycle turbines to generate 640 MW of power. It will be located in Cherokee County, SC.

FERC last week issued a final certificate to Southern Natural Gas to expand its pipeline system to serve new power generation in Alabama and gave Tennessee Gas Pipeline the green light to increase firm takeaway capacity at connections with Maritimes & Northeast Pipeline and Portland Natural Gas Transmission in Massachusetts in order to increase the supply of Canadian natural gas to New England power plants.

FERC has issued final certificates to Southern Natural Gas to serve new power generation in Alabama and to Tennessee Gas Pipeline to increase firm takeaway capacity at connections with Maritimes & Northeast Pipeline and Portland Natural Gas Transmission in Massachusetts in order to increase the supply of Canadian natural gas to New England power plants.

Oregon’s largest natural gas utility and electric power utility have come together with the announcement Monday that Northwest Natural Gas will buy Portland General Electric (PGE) for $1.875 billion. Under terms of the transaction, expected to close by the fourth quarter of 2002, Natural will pay $1.55 billion in cash, give up $200 billion in preferred stock, $50 million in Natural common stock, and assume Enron’s $75 million balance in customer benefits obligations, stipulated in its 1996 PGE purchase. Natural also will assume almost $1.1 billion in PGE debt and preferred stock.

Duke Energy Trading and Marketing LLC has signed a contract to receive load following and load balancing services from Houston-based Falcon Gas Storage Co. Inc. for the 245 MW Encogen Power Plant located near Abilene, TX. Duke is the fuel manager for the plant, which will be served by Falcon’s Hill-Lake gas storage facility in Eastland County, TX.

El Paso Corp. said that it has received several inquires regarding the expandability of the Willcox Lateral to serve new markets off the east leg of the lateral. Of the 130,000 Mcf/d of capacity on the Willcox Lateral, 92,166 Mcf/d has been subscribed, leaving 37,834 Mcf/d of un-subscribed capacity available. The lateral runs 60 miles from the El Paso mainline in Cochise County, AZ, to border crossing facilities and is aimed at serving several existing and proposed gas-fired power plants in Mexico’s northern state of Sonora.