Marketers considering whether to enter soon-to-be deregulatedelectricity and gas markets should re-evaluate strategies in lightof the experience of gas marketers in Georgia. Late entrystrategies may be very risky, according to an analysis of Georgia’sgas deregulation process by Atlanta-based Energy Market Solutions.
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CAPP, TransCanada Agree on New Nova Tolling System
A new gas tolling agreement between TransCanada PipeLines andthe Canadian Association of Petroleum Producers (CAPP) soon mayreplace Nova Gas Transmission’s 19-year-old, postage-stamp pricingsystem with a formula based on distance- and the diameter of thepipe used for transportation. A memorandum of understanding (MOU),signed by CAPP and TransCanada, marks the culmination of asettlement process started when the Canadian gas industry signed apeace accord last April, which also assured construction of theAlliance Pipeline and approval of the TransCanada-Nova merger.
CMS Settles with FTC, Acquisitions to Close Soon
CMS Energy settled Federal Trade Commission charges on Fridaythat threaten to hold up its acquisition of Panhandle Eastern andTrunkline Pipeline from Duke Energy. The FTC charged the purchasewould limit pipeline competition in 54 counties in Michigan. Thesettlement allows CMS to close the deal basically unchanged, but itdid delay the closing by many weeks, a CMS official said.
‘Little Bit of Winter’ Erasing Earlier Softness
The producer who expected Midcontinent prices to be back aroundNovember indexes “fairly soon” (see Daily GPI, Nov. 3) didn’t havelong to wait. In fact, he underestimated the cash market as biggains across the board-except for intra-Alberta-Tuesday carriednearly all points back to index levels or higher. Rises between 15and 35 cents dominated the market.
Gas Choice Coming to 31,000 Virginians
Washington Gas soon will notify its northern Virginia customersof its customer choice pilot. Customers will have the option tochoose from a list of gas suppliers whose names and phone numberswill be included in an October bill insert. A series of communityeducation meetings is planned.
It’s a Go for Alliance In the U.S., FERC Says
Over the din of protesters, especially soon-to-be competitorNatural Gas Pipeline Co. of America (NGPL), FERC last week deniedthe majority of rehearing requests and awarded Alliance PipelineL.P. its long-awaited optional certificate to build a majortransportation link between western Canadian production fields andthe U.S. Midwest.
Rehearing of EDI Rules Sought by Gas Groups
Four major gas associations last week urged FERC to reconsider”as soon as possible” an April rule requiring interstate pipelinesto conduct electronic communication using only electronic datainterchange (EDI) over the Internet by June 1, 1999.
GA Company Providing Billing for Canadian Marketers
Two Canadian energy retailers soon will be served byAtlanta-based Utilipro Inc., provider of customer care solutions.Utilipro recently signed a letter of intent with Direct EnergyMarketing Limited (DEML), Canada’s largest independent gasmarketer, and Apollo Gas Inc. (AGI), a subsidiary of Apollo GasIncome Fund, to directly bill customers for gas and energy-relatedservices.
Wisconsin PSC Awaiting Two Commissioners
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.
D.C. Businesses to Get Customer Choice
More than 250 commercial gas customers in the District ofColumbia will soon have the opportunity to choose a gas supplierother than Washington Gas. The District of Columbia Public ServiceCommission (PSC) approved the company’s request to offer choice inthe District to large commercial customers who use at least 60,000therms/year and who do not maintain an alternate to gas service.(60,000 therms is about 60 times what the average residentialheating customer uses annually.) Large interruptible customers whouse more than 250,000 therms annually have had supplier choicesince 1988.