Service

The American Gas Association said yesterday 30% of the U.S.households with gas service, or 17 million homes, have or soon willhave the opportunity to purchase their natural gas from a supplierother than their local gas utility.

The Michigan Public Service Commission (MPSC) quickly approved aproposal by MichCon to implement a three-year plan to offer its 1.2million residential and commercial gas customers the opportunity toselect alternative natural gas suppliers. The plan also cuts andfreezes gas costs for customers who stay with MichCon as their gasprovider.

Public Service Electric and Gas (PSE&G) announced it willoffer a choice of other natural gas suppliers to an additional300,000 customers this summer, pending approval by the New JerseyBoard of Public Utilities (BPU). Less than one year ago, thecompany introduced the pilot, offering a choice of suppliers toabout 65,000 PSE&G residential customers in four New Jerseymunicipalities, Bloomfield, Piscataway, Pennsauken and Westampton.

Prosper Business Development Corp. of Columbus, OH, formed adivision to assist energy companies in dealing with marketingchallenges of deregulation. Prosper NRG Marketing offers a varietyof turnkey products designed to enhance marketing efforts to thecommercial and residential segments of the energy market. Theproducts can be used to sell energy without a direct sales force.

Minerals Management Service Director Cynthia Quartermanestimated the federal government would lose $500 million/year if aroyalty-in-kind programs were instituted for oil and gas producers.The projected revenue loss plus her claim that MMS already has thelegal authority to collect royalties in kind were reasons cited forthe agencies opposition to legislation recently proposed by Rep.Mac Thornberry (R-TX) that would replace the current gross proceedsroyalty collection program with RIK.

The Alliance Pipeline project’s in-service date is expected tobe delayed by about one year, Alliance Pipeline President and CEODennis Cornelson announced yesterday. The massive Canadian gaspipeline project designed to bring 2.3 Bcf/d of supply to theChicago hub from supply basins in British Columbia and Albertalikely won’t start flowing gas until late in 2000 rather than inNovember 1999 because of continued regulatory delays in Canada. Theproject has come under a hail of protests from competitors inongoing hearings in front of Canada’s National Energy Board.