Supply

R. Skip Horvath, president of the Natural Gas Supply Association(NGSA) and former official of a major pipeline group, took theinitial step last week towards trying to unify a fragmented naturalgas industry.

R. Skip Horvath, president of the Natural Gas Supply Association(NGSA) and former official of a major pipeline group, took theinitial step yesterday towards trying to unify a fragmented naturalgas industry.

First Energy has won a whopper $15 million power supply contractwith the U.S. General Services Administration (GSA) coveringdeliveries to 843 federal accounts in New Jersey, including theStatue of Liberty and Ellis Island, U.S. landmarks operated by theNational Park Service.

First Energy has won a whopper $15 million power supply contractwith the U.S. General Services Administration (GSA) coveringdeliveries to 843 federal accounts in New Jersey, including theStatue of Liberty and Ellis Island, U.S. landmarks operated by theNational Park Service.

Preparing for the potential inability of Peachtree Natural Gasto reliably supply gas, the Georgia Public Service Commission(GPSC) decided to issue an RFP yesterday for any marketer who wouldwant to be an interim pooler and accumulate some or all ofPeachtree’s 177,000 customers. The RFP is scheduled to concludetoday.

The Natural Gas Supply Association (NGSA) last week called intoquestion Vice President Al Gore’s pledge to continue the drillingban along the Florida and California coasts if he’s electedpresident. “The producers of natural gas are dismayed by yourrecent announcement” to stop in its tracks any drilling along thesetwo coasts, where it’s believed more than 40 Tcf of gas may beavailable, wrote NGSA President R. Skip Horvath in a letter toGore. “Denying access to this environmental fuel, some of whichresides offshore, appears inconsistent with the goal for a cleanerfuture.”

Recent reports from the Gas Research Institute (GRI), ElectricPower Supply Association (EPSA), and INGAA on new merchant powerplant generation indicate gas demand is on the verge of a majorboom. The EPSA said the potential generating capacity fromannounced merchant power plants has doubled since October of lastyear. In conjunction with this growth, GRI said half of the sizablegas demand increase expected over the next 15 years would come fromelectricity generation usage. INGAA’s study indicated thatgas-fired generation is in a “prime” position to succeed in afederally deregulated electric market, even with the inclusion of arenewable portfolio standard in the federal legislation. Thereports were published separately earlier this week.

While scores of pipelines are jockeying to supply gas to newpower generators in the Northeast market, PG&E Gas Transmission— the 7th largest pipeline in the nation — is turning itsattention to the rapidly growing generation markets in the PacificNorthwest and Texas, where the competition from rival pipelines ismuch less fierce.

While scores of pipelines are jockeying to supply gas to newpower generators in the Northeast market, PG&E Gas Transmission— the seventh largest pipeline in the nation – is turning itsattention to the rapidly growing generation markets in the PacificNorthwest and Texas, where the competition from rival pipelines ismuch less fierce.