Shot

Although FERC staff shot down the Atlantic Alliance projecttwice as an alternative to both Independence and Millennium, it didnot deter project planners from moving forward with an open season.

Shippers shot Southern Natural’s proposed rate increase full ofholes last week at FERC. Wholesale and retail marketers, municipaland investor-owned utilities, industrial gas users and gasproducers alike told FERC to deny Sonat’s request that theincreased rates be made effective Oct. 1. There was a unanimouscall for hearings and a suspension of the filing for the fullfive-month period subject to refund.

Shippers shot Southern Natural’s proposed rate increase full ofholes this week at FERC. Wholesale and retail marketers, municipaland investor-owned utilities, industrial gas users and gasproducers alike told FERC to deny Sonat’s request that theincreased rates be made effective Oct. 1. There was a unanimouscall for hearings and a suspension of the filing for the fullfive-month period subject to refund.

Oneok’s proposed merger with Southwest Gas received a big shot in the arm last week, as the Nevada Public Utilities Commission (PUCN) unanimously approved the deal two months ahead of schedule. Although approval is still needed from Arizona and California regulators as well as Southwest Gas shareholders, both companies are confident the merger will be completed in the previously announced fourth quarter 1999 timeframe.

Oneok’s proposed merger with Southwest Gas received a big shotin the arm yesterday, as the Nevada Public Utilities Commission(PUCN) unanimously approved the deal two months ahead of schedule.Although approval is still needed from Arizona and Californiaregulators as well as Southwest Gas shareholders, both companiesare confident the merger will be completed in the previouslyannounced fourth quarter 1999 timeframe.

The foreign invasion of the U.S. electric utility market got abig shot in the arm yesterday when the Federal Energy RegulatoryCommission approved two separate transactions valued at $10-$11billion.

KN Energy last week launched an open season for its HorizonPipeline project with a 300 MMcf/d shot across the bows ofcompeting projects to serve the cold weather market in northernIllinois and southern Wisconsin. The anchor customer will be NicorGas of Illinois which needs the 300 MMcf/d for supply flexibilityand to serve new customers.

FERC shot down one major Midwest-to-Northeast pipeline projectyesterday but gave another competing project a final green light.The $447 million Vector Pipeline emerged victorious, receivingFERC’s final approval and a presidential permit in a draft order,while the $400 million TriState Pipeline was sent back to thedrawing board to redesign the pipeline-lease portion of itsproposal.

FERC earlier this week gave Williams Gas Pipelines Central onemore chance to settle the lingering, controversial cost-recoveryissues arising from the reformation of three of its gas supplycontracts for production in Colorado.