Service

The U.S. Department of the Interior’s Minerals ManagementService (MMS) received more than $741.85 million in 486 bids duringthe Western Gulf of Mexico Lease Sale No. 171. Winning or high bidstotaled $553.4 million for 402 blocks.

For those interested in the ratings game, this past week was nota good one for natural gas companies as Moody’s Investors Servicedowngraded one natural gas company and Standard & Poor’s puttwo others on CreditWatch with negative implications. All threeremain in the rarefied upper ranks by virtue of the guaranteedreturns that come with their utility operations. But it’s theirincreasing unregulated business that’s making the ratings agenciesnervous.

There is an unfair advantage in using the name of a 140-year-oldutility when marketing gas in Georgia, the state public servicecommission ruled Friday, ordering Atlanta Gas Light Services (AGLS)to market gas in the state under a different brand until AtlantaGas Light Co. exits the merchant function.

The New York Public Service Commission (PSC) has asked FERC toinitiate a proposed rulemaking for the purpose of opening up aninquiry into the appropriate rate design for interstate natural gaspipelines.

Atlanta Gas Light Services has vowed to fight a decision by aGeorgia Public Service Commission hearing officer that wouldprohibit the company from using the name of its utility affiliate,Atlanta Gas Light. The marketing affiliate filed an appeal June 26,contending the initial decision, if upheld, would “reducecompetition in direct violation of the statutory purposes of the[Georgia] Natural Gas Act” when the deregulated market opens thisfall.

Northern Indiana Public Service Co. (NIPSCO) announced it isexpanding its NIPSCO Choice program to an additional 32,000residential customers in the South Bend area this summer and willintroduce the program to Fort Wayne-area residents early next year.In addition, the number of commercial and small industrialcustomers eligible to choose alternate suppliers will increase to10,000.

The currently one-member Wisconsin Public Service Commission issoon to be restored to full three-commissioner status. Thecommission has been down to one member, Joe Mettner, since May 15when Chair Cheryl L. Parrino stepped down. Previously, Dan Eastmanleft his commission post April 30.

PG&E Energy Service continued to amass a large collection ofretail supply and services contracts yesterday, adding Lucky Storesand American Drug Stores to a list that includes Safewaysupermarkets, Rite-Aid drug stores, McDonald’s restaurants,Blockbuster stores, ARCO gas stations Neiman-Marcus departmentstores and IBM.

After a decade of recuperation, the North American gas industryfaces the challenge of growing end-use consumption to 25 or even 30Tcf in the U.S. alone over the next decade, according to the 1998North American Natural Gas Trends report released yesterday byArthur Andersen and Cambridge Energy Research Associates (CERA).