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BC Gas said it thinks its Southern Crossing Pipeline is now a go since it reached agreement on terms with BC Hydro for firm capacity on the proposed pipeline and peak-shaving to be provided to BC Gas by BC Hydro. In April, the British Columbia Utilities Commission (BCUC) voted down the $350 million Southern Crossing Pipeline paralleling the existing BC Gas mainline in southern British Columbia between Yahk and Oliver (see NGI April 13, 1998). BC Gas re-filed Friday with the BCUC and announced another shipper in addition to BC Hydro.

BC Gas said it thinks its Southern Crossing Pipeline is now a gosince it reached agreement on terms with BC Hydro for firm capacity onthe proposed pipeline and peak-shaving to be provided to BC Gas by BCHydro. In April, the British Columbia Utilities Commission (BCUC)voted down the $350 million Southern Crossing Pipeline paralleling theexisting BC Gas mainline in southern British Columbia between Yahk andOliver (see Daily GPI April 8, 1998). BCGas plans to re-file today with the BCUC and said it has anothershipper in addition to BC Hydro.

In its first report to shareholders since completion of itsmerger with Nova Corp., TransCanada PipeLines reported net incomefrom operations dropped to $139 million in the third quarter from$157 million in the third quarter of 1997, yielding net income pershare of 30 cents, down from 34 cents in the year-ago period.Revenues were up, however, to $4.43 billion from $3.91 billion.

FERC is sending out mixed signals about its position onauctions. The Commission staff, on the one hand, has been workingsteadily since July towards developing an “efficient andcost-effective” auction structure for the market, yet last week ittold critics that the auction concept might not be the best routeto go. In fact, staff threw down the gauntlet challenging the gasindustry to come up with a better way to sell pipeline capacity inthe short-term market.

Deregulation is creating more opportunities for distributedgeneration than there have been since the 1920s, according toconsultant Frost &amp Sullivan. Although regulatory, technical,economic and environmental hurdles remain, deregulation hasprompted utilities and other energy providers to start offeringdistributed generation as a value-added service to retaincustomers. Also, some industrial and commercial customers arebuying generators to gain independence from electric providers.

Statistics recently released by the Oklahoma CorporationCommission (OCC) show gas production in the state last year reachedits lowest level since 1968. However, OCC Commissioner Bob Anthonysaid he sees no cause for alarm and expects little or no furthererosion in production this year forward.

Transcontinental Gas Pipe Line has not proven its case forrolled-in rates for a series of expansions of its Leidy Line andits southern system dating back to 1984, according to anadministrative law judge who found there wouldbe “substantial”cost shifting.

Rolls-Royce has announced a new line of engines that may changethe face of distributed generation. Since 1994 the automotivecompany has been conducting research to design a new generator thatwill help propel the company into the major leagues for distributedgeneration around the world.

A FERC options paper outlining various gas issues, whichCommission staff has been compiling since last fall, is scheduledto go to the full Commission next week – an indication FERC willtake action very soon. Commissioners are at odds, however, overwhether the gas issues will be addressed on a comprehensive basisor individually.