System

E-commerce services provider Automated Power Exchange Inc. (APX)said its new electronic power trading platform does not fall underthe FERC’s jurisdiction because it uses no price-settingmechanisms. The company challenged the FERC over its jurisdictionof power trading and said the recent denial of its petition willhave little impact on the Santa Clara, CA-based company.

Tennessee delayed pigging operations on the Blue Water System,originally scheduled for Monday and today (see Daily GPI, March 6), tentatively until Thursday andFriday of this week. No service restrictions are expected, butproducers may experience higher than normal pressures.

Northeast Utilities and Yankee Gas parent Yankee Energy System,Inc. have completed their merger nine months after the deal wasannounced. The Securities and Exchange Commission, which hadordered the break up of the two companies a decade earlier approvedthe recombination Jan. 31 based on a much more lax application ofthe Public Utility Holding Company Act. After approving the deallast fall, YES shareholders decided whether to receive $45/share incash or in NU stock. NU will issue over 11 million shares to YESshareholders. In addition, YES shareholders who receive NU shares,as opposed to cash, will be eligible to receive NU’s dividend of 10cents per share, payable on March 31 to NU shareholders of recordas of March 6. In the transaction, NU will pay $478 million for allof YES common equity and will assume about $200 million in debt.The Connecticut Department of Public Utility Control issued itsfinal approval Dec. 29. The companies have identified potentialsavings of at least $10 million over the next five years. NortheastUtilities is New England’s biggest electric utility and Yankee Gasis Connecticut’s biggest gas distribution company.

Reliant is under a Critical Period operational alert due tosevere weather in the system’s market area. Effective today no SBSrate schedule storage withdrawals will be allowed until furthernotice.

Shippers on the Northern Natural Gas system called on FERC toreject the pipeline’s latest tariff proposal because they say ittries to pass off index-based rates as “discounted” rates ratherthan negotiated rates.

AltaGas Services acquired a 53-mile gas gathering system andrelated compression in the Kindersley area of Saskatchewan for C$3million. The acquisition of the Kindersley & Kerrobert gasgathering systems are a significant strategic addition to AltaGas’Central Border gas gathering and processing complex. With theaddition of these systems AltaGas’ contiguous presence in westcentral Saskatchewan is 56 miles east from the Alberta/Saskatchewanborder. This extensive area presence provides AltaGas withsignificant opportunity as producers are expected to substantiallyincrease gas drilling activity in this currently largelyundeveloped gas region. Since AltaGas’ first acquisition in thisarea in 1996, Central Border has increased from a 4 MMcf/dprocessing facility with 49 miles of gathering lines to an 81MMcf/d processing complex with more than 311miles of gatheringlines. With the addition of these new assets utilization of theCentral Border complex will be 78%.

Due to forecasts of colder weather, a System Protection Warningtakes effect today until further notice for MRT’s mainline north ofthe Glendale (AR) Station. MRT recommended that customers withinterruptible and Authorized Overrun gas on the mainline re-sourcethose volumes to the East Line. The East Line is a lateral about 90miles long from Trunkline in central Illinois east to the St. Louisarea, connecting with NGPL along the way. If excess volumescontinue on the mainline, MRT said, it will issue an OFOrestricting that line to FT only.

Pacific Gas & Electric said Friday it was working to resolveproblems with the OFO/EFO Outlook and System Inventory Status linkson its Pipe Ranger web site, hoping to restore them to operationSunday. Meanwhile, the utility assured shippers that no OFO hadbeen called for Saturday.

Northern Natural Gas extended a System Underrun Limitationcaused by high linepack at least through Saturday’s gas day. TheSUL began Friday (see Daily GPI, Nov. 11).